Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, thanks to fintech startup Stratiphy. The company will provide access to ETNs from 21Shares, including those for bitcoin, ether, and a combination of BTC and gold, within a special class of individual savings account (ISA). This development allows investors to save up to £20,000 per year without paying income tax or capital gains tax on returns. Stratiphy, which enables users to personalize investment strategies, is offering both crypto ETNs and Innovative Finance ISAs.
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's move is expected to make crypto investment more accessible to a broader base of retail investors. The platform, which manages £4 million for 2,000 clients, will provide a new asset class with low correlation to other asset classes, according to CEO Daniel Gold.