Following approval, UK investors can once again invest in cryptocurrency exchange-traded notes (ETNs) through a tax-free individual savings account (ISA) offered by fintech startup Stratiphy. This development comes after Stratiphy received authorization to provide both crypto ETNs and Innovative Finance ISAs (IFISAs).
ISAs enable users to save up to £20,000 annually without incurring income tax or capital gains tax on returns. Recently, the UK's tax authority, His Majesty's Revenue and Customs (HMRC), reclassified crypto ETNs as instruments available only in IFISAs from the start of the current tax year.
Stratiphy will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold. The platform, which manages £4 million for 2,000 clients, has seen significant interest in these crypto products, with its CEO noting that they offer a unique way to diversify portfolios due to their low correlation with other asset classes.