Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free vehicle, courtesy of fintech startup Stratiphy's individual savings account (ISA) offering. Stratiphy's platform enables users to personalize their investment strategies and offers both crypto ETNs and Innovative Finance ISAs (IFISAs). ISAs allow 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's offering, investors can now access crypto ETNs in a tax-free environment. 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, notes that there is significant interest in these products, citing their potential for portfolio diversification and low correlation to other asset classes.