UK investors can once again benefit from holding cryptocurrency exchange-traded notes (ETNs) in a tax-free account, thanks to Stratiphy's recent approval to offer them in an Innovative Finance ISA (IFISA). This development comes after a report by the Financial Times, which stated that Stratiphy, a fintech platform allowing users to personalize investment strategies, will provide access to both crypto ETNs and IFISAs. ISAs enable users to save up to £20,000 per year without paying income tax or capital gains tax on the returns.
Following the UK tax authority's classification of crypto ETNs as IFISA-only instruments from April 6, Stratiphy's move essentially revives last year's decision to lift the ban on retail access to crypto ETNs. The platform will offer three ETNs provided by 21Shares, 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, citing their potential for portfolio diversification and low correlation to other asset classes.