Following approval, UK investors can once again access cryptocurrency ETNs through a tax-free vehicle, courtesy of fintech startup Stratiphy's ISA offering. Stratiphy's platform, which enables personalized investment strategies, will provide both crypto ETNs and Innovative Finance ISAs.
This development allows users to save up to £20,000 annually without incurring income tax or capital gains tax on returns. The move comes after the UK's tax authority, HMRC, classified crypto ETNs as IFISA-only instruments from the start of the current tax year. Stratiphy will offer access to three 21Shares ETNs, including those tracking bitcoin, ether, and a bitcoin-gold combination.
With £4 million in assets under management for 2,000 clients, Stratiphy's CEO, Daniel Gold, noted a significant interest in these crypto products, highlighting their potential for portfolio diversification due to low correlation with other asset classes.