Following approval from the relevant authorities, UK-based fintech startup Stratiphy is now offering cryptocurrency exchange-traded notes (ETNs) in a tax-free individual savings account (ISA). This development allows investors in the UK to once again hold crypto ETNs without incurring taxes. Stratiphy's platform enables users to personalize their investment strategies and offers both crypto ETNs and Innovative Finance ISAs (IFISAs). ISAs permit users to save up to £20,000 annually without paying income tax or capital gains tax on returns.
The U.K.'s tax authority, His Majesty's Revenue and Customs (HMRC), had previously classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year. However, with Stratiphy's approval, UK investors can now access these products tax-free. Stratiphy will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of bitcoin and gold.
The company 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 asset classes.