Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free savings account, thanks to fintech startup Stratiphy. This development allows users to invest in crypto ETNs through a special class of individual savings account (ISA), as reported by the Financial Times. Stratiphy's platform enables users to personalize their investment strategies and offers both crypto ETNs and Innovative Finance ISAs (IFISAs). ISAs permit users to save up to £20,000 per year without incurring income tax or capital gains tax on returns.
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 made the earlier decision to lift the ban on retail users accessing 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 diversifying portfolios and low correlation to other asset classes.