Following approval, UK investors can hold cryptocurrency exchange-traded notes in a tax-free account after Stratiphy, a fintech startup, received authorization to offer them in a special class of individual savings account. This development allows users to save up to 20,000 pounds a year without incurring income tax or capital gains tax on returns. Stratiphy offers both crypto ETNs and Innovative Finance ISAs, which are authorized to invest in them. The UK's tax authority had previously classified crypto ETNs as instruments only available in IFISAs, making last year's decision to lift the ban on retail users redundant.
Stratiphy will provide access to three ETNs from 21Shares, including those covering bitcoin, ether, and a BTC and gold combination. The investment platform manages 4 million pounds for 2,000 clients and sees significant interest in these crypto products as a way to diversify portfolios.