Following approval, UK investors can now hold cryptocurrency exchange-traded notes in a tax-free vehicle through Stratiphy, a fintech startup. This development allows investors to personalize their investment strategies using crypto ETNs and Innovative Finance ISAs. ISAs enable users to save up to £20,000 annually without paying income tax or capital gains tax on returns.
Stratiphy offers access to three ETNs provided by 21Shares, covering bitcoin, ether, and a combination of BTC and gold. The UK's tax authority, HMRC, had previously classified crypto ETNs as only available in IFISAs, making last year's decision to lift the ban on retail users accessing crypto ETNs redundant. Stratiphy's move is expected to make crypto investment more accessible to retail investors in the UK.