UK investors can once again benefit from tax-free cryptocurrency investments after Stratiphy, a fintech startup, received approval to offer crypto ETNs in a specialized individual savings account. This development allows investors to hold cryptocurrency exchange-traded notes in a tax-free vehicle. Stratiphy offers both crypto ETNs and Innovative Finance ISAs, which permit users to invest in them. ISAs enable users to save up to £20,000 annually without incurring income tax or capital gains tax on the returns.
Following the UK tax authority's classification of crypto ETNs as instruments available only in IFISAs from the start of the current tax year, Stratiphy's approval makes it possible for investors to access these products tax-free. The platform will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold.
With £4 million in assets under management for 2,000 retail and corporate clients, Stratiphy's CEO, Daniel Gold, noted a significant interest in these products, highlighting their potential for diversifying portfolios as a new asset class with low correlation to other asset classes.