Following approval from the relevant authorities, UK investors can once again benefit from tax-free cryptocurrency investments through a specialized individual savings account (ISA) offered by Stratiphy. This development comes after the fintech company received permission to provide cryptocurrency exchange-traded notes (ETNs) within a specific class of ISA. Stratiphy, a platform enabling users to tailor their investment strategies, will offer both crypto ETNs and Innovative Finance ISAs.
These ISAs allow users to save up to £20,000 annually without incurring income tax or capital gains tax on their returns. The UK's tax authority, HMRC, had previously classified crypto ETNs as eligible only for IFISAs from the start of the current tax year. This move had rendered the earlier decision to lift the ban on retail access to crypto ETNs redundant, as mainstream platforms did not offer IFISAs with crypto products.
Stratiphy will provide access to three 21Shares ETNs, covering bitcoin, ether, and a combination of BTC and gold. With £4 million in assets under management for 2,000 clients, Stratiphy's CEO Daniel Gold noted a significant interest in these products, highlighting their potential for portfolio diversification as a new asset class with low correlation to other assets.