Following approval from the relevant authorities, UK investors can once again benefit from tax-free cryptocurrency investments through Stratiphy's innovative platform. This development comes after the fintech startup received the green light to offer cryptocurrency exchange-traded notes (ETNs) within a specialized individual savings account (ISA).
As reported by the Financial Times, Stratiphy's platform allows users to create personalized investment strategies, including access to both crypto ETNs and Innovative Finance ISAs (IFISAs). ISAs enable users to save up to £20,000 annually without incurring income tax or capital gains tax on their returns. The two primary types of ISAs are cash ISAs, which generate interest, and stocks and shares ISAs, which invest in equities and exchange-traded instruments. At the end of February, the UK's tax authority, His Majesty's Revenue and Customs (HMRC), reclassified crypto ETNs as instruments exclusively available within IFISAs from the start of the current tax year.
This move had essentially rendered last year's decision to lift the ban on retail access to crypto ETNs redundant, as no major investment platforms offered IFISAs with crypto products. Stratiphy will provide access to three ETNs offered by 21Shares, covering bitcoin, ether, and a combination of BTC and gold.
With £4 million in assets under management for 2,000 retail and corporate clients, Stratiphy's CEO, Daniel Gold, noted that there is significant interest in these crypto products, citing their potential to diversify portfolios and offer low correlation to other asset classes.