Following approval, UK investors can once again hold cryptocurrency exchange-traded notes in a tax-free vehicle, thanks to fintech startup Stratiphy. The company will provide access to three ETNs from 21Shares, including those tracking bitcoin, ether, and a combination of BTC and gold, as reported by the Financial Times.
This development comes after Stratiphy received authorization to offer these ETNs in a special class of individual savings account, known as an Innovative Finance ISA. ISAs allow users to save up to £20,000 annually without incurring income tax or capital gains tax on returns. Stratiphy, a platform enabling personalized investment strategies, will offer both crypto ETNs and IFISAs.
The UK's tax authority, HMRC, had previously classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year. This move had rendered last year's decision to lift the ban on retail access to crypto ETNs redundant, as no mainstream platforms offered IFISAs with crypto products.
Stratiphy manages £4 million for 2,000 clients and will provide the aforementioned ETNs. According to CEO Daniel Gold, there is a significant interest in these products, which offer a unique way to diversify portfolios with low correlation to other asset classes.