Following approval, UK investors can once again utilize tax-free accounts to hold cryptocurrency exchange-traded notes, thanks to fintech startup Stratiphy. According to the Financial Times, Stratiphy will provide both crypto ETNs and Innovative Finance ISAs, allowing users to personalize their investment strategies. ISAs enable users to save up to £20,000 annually without paying income tax or capital gains tax on returns. Recently, the UK's tax authority classified crypto ETNs as instruments only available in IFISAs, rendering last year's decision to lift the ban on retail users accessing crypto ETNs redundant.
Stratiphy will offer access to 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 noted a significant interest in these products, citing their potential for diversifying portfolios as a new asset class with low correlation to other asset classes.