UK investors can once again benefit from tax-free cryptocurrency investments thanks to Stratiphy, a fintech startup that has received approval to offer crypto exchange-traded notes (ETNs) in a special class of individual savings account (ISA). According to a Financial Times report, Stratiphy will provide access to ETNs from 21Shares, including those tracking bitcoin, ether, and a unique combination of BTC and gold. This development allows UK investors to hold cryptocurrency ETNs in a tax-free vehicle, following the company's receipt of approval to offer them in an Innovative Finance ISA (IFISA).
ISAs enable users to save up to £20,000 per year without incurring income tax or capital gains tax on their returns. Stratiphy, which manages £4 million for 2,000 clients, will offer both crypto ETNs and IFISAs, providing a unique opportunity for investors to diversify their portfolios with a new asset class that has low correlation to other asset classes.