UK investors can once again benefit from tax-free cryptocurrency investments after Stratiphy, a fintech startup, received approval to offer crypto ETNs in an Individual Savings Account (ISA). According to a Financial Times report, Stratiphy will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold. This development allows investors to hold cryptocurrency ETNs in a tax-free vehicle, following the company's receipt of approval to offer them in an Innovative Finance ISA (IFISA). ISAs enable 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. However, with Stratiphy now offering IFISAs and crypto ETNs, investors can diversify their portfolios with a new asset class that has low correlation to other asset classes.