Following approval, UK investors can once again utilize a tax-free account to hold cryptocurrency exchange-traded notes, thanks to fintech startup Stratiphy. The company will provide both crypto ETNs and Innovative Finance ISAs, as reported by the Financial Times. ISAs enable users to save up to £20,000 annually without paying income tax or capital gains tax on returns.
Stratiphy will offer access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold. This development comes after the UK's tax authority, HMRC, classified crypto ETNs as instruments available only in IFISAs from the start of the current tax year. Stratiphy, which manages £4 million for 2,000 clients, sees significant interest in these products as a means to diversify portfolios with a new asset class having low correlation to other asset classes.