Following approval, UK investors can once again utilize cryptocurrency exchange-traded notes in a tax-free account, thanks to fintech startup Stratiphy. This development allows investors to hold crypto ETNs in a special class of individual savings account, as reported by the Financial Times. Stratiphy, a platform that enables users to personalize investment strategies, is offering both crypto ETNs and Innovative Finance ISAs. ISAs permit users to save up to 20,000 pounds annually without incurring income tax or capital gains tax on returns.
This move comes after the UK's tax authority, His Majesty's Revenue and Customs, classified crypto ETNs as instruments available only in IFISAs from the start of the current tax year. Stratiphy will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of bitcoin and gold.
The London-based investment platform manages 4 million pounds for 2,000 clients and has seen significant interest in these products, citing their potential for diversifying portfolios with low correlation to other asset classes.