Following Stratiphy's approval to offer cryptocurrency exchange-traded notes (ETNs) in a tax-free individual savings account (ISA), UK investors can now hold crypto ETNs without incurring taxes. Stratiphy, a fintech platform, provides users with personalized investment strategies and offers both crypto ETNs and Innovative Finance ISAs (IFISAs). ISAs allow users to save up to £20,000 per year tax-free, with no income tax or capital gains tax on returns.
Recently, the UK's tax authority, HMRC, classified crypto ETNs as only available in IFISAs, rendering last year's decision to lift the ban on retail access redundant due to the lack of mainstream investment platforms offering IFISAs. Stratiphy will offer access to three ETNs from 21Shares, including those 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 crypto products, highlighting their potential for portfolio diversification with low correlation to other asset classes.