Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, thanks to fintech startup Stratiphy. The company will provide access to crypto ETNs and Innovative Finance ISAs, allowing users to save up to £20,000 per year without paying income tax or capital gains tax on returns. This development comes after the UK's tax authority, HMRC, classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year. Stratiphy will offer three ETNs from 21Shares, including those covering bitcoin, ether, and a combination of BTC and gold.
The move is seen as a way to diversify portfolios, with a new asset class having low correlation to other asset classes.