Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free vehicle through Stratiphy, a fintech startup that offers personalized investment strategies. This development allows users to invest in crypto ETNs and IFISAs, a special class of individual savings account. ISAs enable users to save up to £20,000 annually without paying income tax or capital gains tax on returns.
Stratiphy will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold. The UK's tax authority, HMRC, had previously classified crypto ETNs as only available in IFISAs from the start of the current tax year. This move had rendered the previous decision to lift the ban on retail users accessing crypto ETNs redundant. Stratiphy manages £4 million for 2,000 retail and corporate clients and has seen significant interest in these crypto products, which offer a new asset class with low correlation to other asset classes.