Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free vehicle through fintech startup Stratiphy, which will provide access to these products within a special class of individual savings account. Stratiphy, a platform allowing users to personalize investment strategies, will offer both crypto ETNs and Innovative Finance ISAs. This development allows users to save up to £20,000 annually without paying income tax or capital gains tax on returns. The UK's tax authority, HMRC, had previously classified crypto ETNs as available only in IFISAs from the start of the current tax year.
Stratiphy will offer three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold, with the London-based investment platform managing £4 million for 2,000 clients. According to CEO Daniel Gold, there is significant interest in these products as they provide a new asset class with low correlation to other assets, making them an interesting way to diversify portfolios.