Investors in the UK can once again benefit from tax-free cryptocurrency investments after Stratiphy, a fintech startup, received approval to offer crypto ETNs in an Individual Savings Account (ISA). According to the Financial Times, Stratiphy will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold. This development allows UK investors to hold cryptocurrency ETNs in a tax-free vehicle, following Stratiphy's approval to offer them in an Innovative Finance ISA (IFISA).
ISAs enable users to save up to £20,000 per year without paying income tax or capital gains tax on returns. Stratiphy, a platform that lets users personalize investment strategies, offers both crypto ETNs and IFISAs. The move comes after the UK's tax authority, HMRC, classified crypto ETNs as IFISA-only instruments from the start of the current tax year.
This decision had made last year's lift on the ban of 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 offer the new ETNs, citing significant interest in these products as a way to diversify portfolios with a new asset class that has low correlation to other asset classes.