Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free vehicle through Stratiphy, a fintech startup that allows users to personalize their investment strategies. Stratiphy will offer access to ETNs in a special class of individual savings account (ISA), as reported by the Financial Times.
This move allows 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 instruments only available in IFISAs from the start of the current tax year. Stratiphy will provide access to three ETNs from 21Shares, including those covering bitcoin, ether, and a combination of BTC and gold.
The London-based investment platform manages £4 million for 2,000 clients and has seen significant interest in these crypto products.