Following approval from the relevant authorities, UK investors can once again invest in cryptocurrency exchange-traded notes (ETNs) through a tax-free vehicle, as reported by the Financial Times. Stratiphy, a fintech company, has received permission to offer ETNs in a special class of individual savings account (ISA). The company provides users with the ability to personalize their investment strategies and offers both crypto ETNs and Innovative Finance ISAs (IFISAs).
ISAs allow users to save up to £20,000 per year without incurring income tax or capital gains tax on their returns. The UK's tax authority, His Majesty's Revenue and Customs (HMRC), had previously classified crypto ETNs as only available in IFISAs from the start of the current tax year.
However, this decision had limited impact as no major investment platforms offered IFISAs with crypto products. Stratiphy will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold. The company manages £4 million for 2,000 retail and corporate clients and has seen significant interest in these crypto products.
According to CEO Daniel Gold, investing in crypto offers a unique way to diversify a portfolio, as it is a new asset class with low correlation to other asset classes.