Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, thanks to fintech startup Stratiphy, as reported by the Financial Times. Stratiphy, a platform allowing users to personalize investment strategies, will offer crypto ETNs and Innovative Finance ISAs, which can invest in them.
These ISAs enable users to save up to £20,000 annually without paying income or capital gains tax on returns. After the UK tax authority, HMRC, classified crypto ETNs as IFISA-only instruments from the current tax year's start, Stratiphy's move addresses the resulting gap in mainstream investment platforms offering IFISAs with crypto products. Stratiphy will provide access to three 21Shares ETNs: bitcoin, ether, and a BTC-gold combination.
With £4 million in assets under management for 2,000 clients, CEO Daniel Gold noted a high level of interest in these products as a means to diversify portfolios with a new, low-correlation asset class.