UK investors can now hold cryptocurrency exchange-traded notes in a tax-free vehicle, thanks to fintech startup Stratiphy's approval to offer them in a special class of individual savings account. Stratiphy, a platform allowing users to personalize their investment strategies, will offer both crypto ETNs and Innovative Finance ISAs.
ISAs enable users to save up to £20,000 per year without paying income tax or capital gains tax on returns. Following HMRC's classification of crypto ETNs as IFISA-only instruments, Stratiphy's move essentially revives last year's decision to lift the ban on retail users accessing crypto ETNs. The platform will offer access to three ETNs provided by 21Shares, covering bitcoin, ether, and a combination of bitcoin and gold.
With £4 million in assets under management for 2,000 clients, Stratiphy's CEO notes a significant interest in these products, highlighting their potential for diversifying portfolios with low correlation to other asset classes.