Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, thanks to fintech startup Stratiphy. The company will provide access to ETNs in a special class of individual savings account, as reported by the Financial Times. Stratiphy's platform allows users to personalize their investment strategies and offers both crypto ETNs and Innovative Finance ISAs. ISAs enable users to save up to £20,000 annually without paying income tax or capital gains tax on returns.
Recently, the UK's tax authority classified crypto ETNs as instruments only available in IFISAs, rendering last year's decision to lift the ban on retail users accessing crypto ETNs redundant. Stratiphy will offer three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold. The investment platform manages £4 million for 2,000 clients and has seen significant interest in these products, with CEO Daniel Gold stating they offer a unique way to diversify portfolios as a new asset class with low correlation to other asset classes.