UK investors can once again benefit from tax-free cryptocurrency investments, thanks to Stratiphy's recent approval to offer exchange-traded notes (ETNs) in a specialized individual savings account (ISA). According to the Financial Times, this fintech startup will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of bitcoin and gold.
By using an Innovative Finance ISA (IFISA), users can invest up to £20,000 per year without incurring income tax or capital gains tax on their returns. This development reverses a previous decision by the UK's tax authority, which had effectively restricted access to crypto ETNs for retail investors. Stratiphy, which manages £4 million for 2,000 clients, will offer these tax-free investment options, providing a unique opportunity for portfolio diversification with a new asset class that has low correlation to other assets.