UK investors can once again invest in cryptocurrency exchange-traded notes (ETNs) without incurring tax liabilities, thanks to Stratiphy's new approval to offer them in a specialized individual savings account (ISA). Stratiphy, a fintech firm, provides users with personalized investment strategies and now offers both crypto ETNs and Innovative Finance ISAs (IFISAs). ISAs allow users to save up to £20,000 annually without paying income tax or capital gains tax on returns.
Following a recent classification by the UK's tax authority, HMRC, crypto ETNs are now only available in IFISAs. This development had previously made it difficult for retail users to access crypto ETNs, but Stratiphy's approval has changed this. The company will offer access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold.
Stratiphy manages £4 million for 2,000 clients and has seen significant interest in these crypto products, which offer a new asset class with low correlation to other assets.