UK investors can once again invest in cryptocurrency exchange-traded notes (ETNs) without incurring tax liabilities, thanks to fintech startup Stratiphy's approval to offer them in a specialized individual savings account (ISA). Stratiphy, a platform that enables personalized investment strategies, will provide access to both crypto ETNs and Innovative Finance ISAs (IFISAs), as reported by the Financial Times.
ISAs allow users to save up to £20,000 annually without paying income tax or capital gains tax on returns. Following the UK tax authority's classification of crypto ETNs as IFISA-only instruments from April 6, Stratiphy's move effectively reverses last year's decision to lift the ban on retail access to crypto ETNs. The company will offer three ETNs from 21Shares, covering bitcoin, ether, and a BTC-gold combination, and manages £4 million for 2,000 clients. According to CEO Daniel Gold, there is significant interest in these products, which offer a unique way to diversify portfolios with low correlation to other asset classes.