Following approval, UK investors can once again hold cryptocurrency exchange-traded notes in a tax-free vehicle, thanks to fintech startup Stratiphy, as reported by the Financial Times. Stratiphy, a platform that allows users to personalize investment strategies, will offer both crypto ETNs and Innovative Finance ISAs. ISAs enable 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 classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year.
This decision sparked criticism, as it made last year's lift on the ban of retail users accessing crypto ETNs redundant. Stratiphy will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold. The London-based investment platform manages £4 million for 2,000 clients and has seen significant interest in these crypto products, according to CEO Daniel Gold.