Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, thanks to fintech startup Stratiphy's new offering. Stratiphy, which allows users to personalize investment strategies, will provide both 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. The UK's tax authority, HMRC, had previously classified crypto ETNs as only available in IFISAs from the start of the current tax year.
This move had rendered last year's decision to lift the ban on retail access to crypto ETNs redundant, as no mainstream platforms offered IFISAs with crypto products. Stratiphy will offer three ETNs from 21Shares, including those covering bitcoin, ether, and a combination of BTC and gold.
With £4 million in assets under management for 2,000 clients, Stratiphy's CEO Daniel Gold noted a significant interest in these products, citing their potential for portfolio diversification as a new asset class with low correlation to other assets.