Following approval, UK investors can once again hold cryptocurrency exchange-traded notes in a tax-free vehicle, thanks to fintech startup Stratiphy. The company will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold, within a special class of individual savings account. This development allows users to save up to £20,000 per year without paying income tax or capital gains tax on returns.
Stratiphy, a platform that enables personalized investment strategies, offers both crypto ETNs and Innovative Finance ISAs. 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 approval, investors can now access these products in a tax-free environment. The company will manage £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.