UK investors can once again benefit from tax-free cryptocurrency investments, thanks to fintech startup Stratiphy's approval to offer them in a specialized individual savings account (ISA). According to the Financial Times, Stratiphy, which allows users to personalize their investment strategies, will offer both crypto ETNs and Innovative Finance ISAs (IFISAs).
ISAs enable users to save up to £20,000 per year without incurring income tax or capital gains tax on returns. Following a classification by the UK's tax authority, HMRC, crypto ETNs are now only available in IFISAs from the start of the current tax year. This decision had previously made last year's ban lift on retail users accessing crypto ETNs redundant, as no mainstream investment platforms offered IFISAs with crypto products.
Stratiphy will provide access to three ETNs from 21Shares: bitcoin, ether, and a combination of bitcoin and gold. With £4 million in assets under management for 2,000 clients, Stratiphy's CEO Daniel Gold notes that there is a high level of interest in these products, which offer a unique way to diversify portfolios with low correlation to other asset classes.