Following approval from the relevant authorities, UK investors can once again invest in cryptocurrency exchange-traded notes (ETNs) without incurring tax liabilities, thanks to fintech startup Stratiphy's new offering. Stratiphy, a platform that enables users to customize their investment strategies, will provide access to crypto ETNs and Innovative Finance ISAs (IFISAs), as reported by the Financial Times. ISAs allow users to save up to £20,000 per year without paying 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, rendering last year's decision to lift the ban on retail access to crypto ETNs redundant. However, with Stratiphy's new offering, investors can now access three ETNs provided by 21Shares, covering bitcoin, ether, and a combination of BTC and gold.
According to Stratiphy's CEO, Daniel Gold, there is a significant level of interest in these products, which offer a unique way to diversify portfolios with a new asset class that has low correlation to other asset classes.