Following approval, UK investors can once again hold cryptocurrency exchange-traded notes in a tax-advantaged account, thanks to fintech startup Stratiphy. This development allows investors to personalize their investment strategies while minimizing tax liabilities. Stratiphy's platform provides access to both crypto ETNs and Innovative Finance ISAs, enabling users to save up to £20,000 annually without incurring income tax or capital gains tax on returns.
The move comes after the UK's tax authority, HMRC, classified crypto ETNs as instruments available only in IFISAs from the start of the current tax year. Stratiphy will offer three ETNs from 21Shares, including those tracking bitcoin, ether, and a combined BTC and gold product.
With £4 million in assets under management for 2,000 clients, Stratiphy's CEO notes that crypto products offer a unique opportunity for portfolio diversification, with low correlation to other asset classes.