Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, thanks to fintech startup Stratiphy. This development allows users to invest in crypto ETNs within a special class of individual savings account (ISA), as reported by the Financial Times. Stratiphy, a platform that enables personalized investment strategies, will offer both crypto ETNs and Innovative Finance ISAs (IFISAs), which are authorized to invest in them.
ISAs permit users to save up to £20,000 annually without incurring income tax or capital gains tax on returns. Recently, the UK's tax authority, HMRC, classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year. This move had rendered last year's decision to lift the ban on retail access to crypto ETNs redundant, as no mainstream investment platform offered IFISAs with crypto products. Stratiphy 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 clients, Stratiphy's CEO, Daniel Gold, noted a significant interest in these crypto products, citing their potential for portfolio diversification and low correlation to other asset classes.