UK investors can once again benefit from tax-free cryptocurrency investments, thanks to fintech startup Stratiphy's approval to offer crypto ETNs in an Individual Savings Account (ISA). Stratiphy's platform allows users to personalize their investment strategies and offers both crypto ETNs and Innovative Finance ISAs (IFISAs), as reported by the Financial Times. ISAs enable users to save up to £20,000 per year 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, with no mainstream platforms offering IFISAs with crypto products, this decision was seen as redundant. Stratiphy will provide access to three ETNs from 21Shares: bitcoin, ether, and a combination of BTC and gold. The platform, which has been in operation since August last year, manages £4 million for 2,000 retail and corporate clients.
According to CEO Daniel Gold, there is a significant level of interest in these crypto products, which offer a unique way to diversify portfolios with low correlation to other asset classes.