Following Stratiphy's approval to offer cryptocurrency exchange-traded notes (ETNs) in a special class of individual savings account (ISA), investors in the UK can once again hold crypto ETNs tax-free. Stratiphy, a fintech platform allowing personalized investment strategies, will offer both crypto ETNs and Innovative Finance ISAs (IFISAs). ISAs enable users to save up to £20,000 annually without paying income tax or capital gains tax on returns.
The UK's tax authority, HMRC, 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 combination of BTC and gold. With £4 million in assets under management for 2,000 clients, Stratiphy's CEO Daniel Gold noted a high level of interest in these products, citing their potential for portfolio diversification as a new asset class with low correlation to other classes.