Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, thanks to fintech startup Stratiphy. The company will provide access to three ETNs from 21Shares, including those tracking bitcoin, ether, and a BTC and gold combination, within a special class of individual savings account (ISA). This development comes after the UK's tax authority, HMRC, classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year.
Stratiphy's platform allows users to personalize their investment strategies and offers both crypto ETNs and IFISAs. ISAs enable users to save up to £20,000 per year without paying income tax or capital gains tax on returns. The move is expected to make the UK more competitive in the crypto investment market, as other countries have made similar products available to a broader range of retail investors.
Stratiphy manages £4 million for 2,000 clients and sees significant interest in these crypto products, citing their potential to diversify portfolios with low correlation to other asset classes.