Investors in the UK can once again benefit from holding cryptocurrency exchange-traded notes (ETNs) in a tax-free account, thanks to Stratiphy's approval to offer them within a special class of individual savings account (ISA). This development comes after fintech startup Stratiphy received the necessary approval, as reported by the Financial Times. Stratiphy, a platform allowing users to personalize investment strategies, now offers both crypto ETNs and Innovative Finance ISAs (IFISAs), the authorized wrapper for investing in them. ISAs enable users to save up to £20,000 annually without incurring income tax or capital gains tax on returns.
The most common types include cash ISAs, which generate interest, and stocks and shares ISAs, which invest in equities and exchange-traded instruments. Following the UK tax authority's classification of crypto ETNs as IFISA-exclusive instruments from the start of the current tax year, this move essentially revives last year's decision to lift the ban on retail access to crypto ETNs. Previously, no mainstream investment platform offered IFISAs, rendering the decision redundant. 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 retail and corporate clients, Stratiphy's CEO, Daniel Gold, noted a significant interest in these products, citing their potential for portfolio diversification as a new asset class with low correlation to other classes.