UK investors can once again benefit from tax-free cryptocurrency investments, thanks to Stratiphy's approval to offer exchange-traded notes (ETNs) in a specialized individual savings account (ISA). This development, reported by the Financial Times, allows users to hold crypto ETNs and other investments in a tax-efficient wrapper. Stratiphy, a fintech platform, will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of bitcoin and gold.
The UK's tax authority had previously restricted crypto ETNs to Innovative Finance ISAs, making them less accessible to mainstream investors. With Stratiphy's offering, investors can now save up to £20,000 per year without incurring income tax or capital gains tax on their returns.
According to Stratiphy's CEO, Daniel Gold, there is significant interest in these crypto products, which offer a unique opportunity for portfolio diversification with low correlation to other asset classes.