Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, thanks to fintech startup Stratiphy. This development allows users to personalize their investment strategies through Stratiphy's platform, which offers both crypto ETNs and IFISAs. With an ISA, users can save up to £20,000 annually without incurring income tax or capital gains tax on returns. The UK's tax authority, HMRC, had previously classified crypto ETNs as only available in IFISAs from the start of the current tax year.
However, this made the decision to lift the ban on retail users accessing crypto ETNs redundant, as no mainstream platforms offered IFISAs with crypto products. Stratiphy will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a BTC-gold combination. The platform manages £4 million for 2,000 clients and sees significant interest in these crypto products as a means to diversify portfolios with a new asset class.