UK investors can once again benefit from holding cryptocurrency exchange-traded notes (ETNs) in a tax-free vehicle, thanks to fintech startup Stratiphy's recent approval to offer them in a special class of individual savings account (ISA). Stratiphy, a platform that allows users to personalize their investment strategies, will provide both crypto ETNs and Innovative Finance ISAs (IFISAs). ISAs enable users to save up to £20,000 per year without paying income tax or capital gains tax on returns. Following the UK tax authority's classification of crypto ETNs as IFISA-exclusive instruments, Stratiphy's move addresses the criticism that the UK was at risk of becoming an outlier in markets where exchange-traded products have made crypto investment available to a broader base of retail investors.
Stratiphy will offer access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold, to its 2,000 retail and corporate clients, with £4 million in managed assets. According to CEO Daniel Gold, there is a significant interest in these crypto products, which provide a unique way to diversify portfolios with low correlation to other asset classes.