Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, courtesy of fintech startup Stratiphy. The company will provide access to three ETNs from 21Shares, including those tracking bitcoin, ether, and a BTC and gold combination, as reported by the Financial Times. This development allows investors to personalize their investment strategies using Stratiphy's platform, which offers both crypto ETNs and Innovative Finance ISAs. ISAs enable users to 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 instruments only available in IFISAs from the start of the current tax year. Stratiphy's move is seen as a significant step, as it makes crypto investment more accessible to a broader base of retail investors. The company will manage £4 million for 2,000 clients, with its CEO, Daniel Gold, citing a 'disproportionate level of interest' in these products as a means to diversify portfolios.