Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, courtesy of fintech startup Stratiphy, which will provide access to these investments through a special class of individual savings account. Stratiphy allows users to personalize investment strategies and offers crypto ETNs and Innovative Finance ISAs, as reported by the Financial Times. ISAs enable users to save up to £20,000 annually without incurring income tax or capital gains tax on returns. The UK's tax authority, HMRC, had earlier classified crypto ETNs as IFISA-only instruments from the start of the current tax year, rendering last year's decision to lift the ban on retail access redundant.
Stratiphy will provide access to three 21Shares ETNs, including those for bitcoin, ether, and a BTC-gold combination. The platform, which manages £4 million for 2,000 clients, has noted significant interest in these products, citing their potential for portfolio diversification due to low correlation with other asset classes.