UK investors can once again benefit from holding cryptocurrency exchange-traded notes (ETNs) in a tax-free vehicle, following Stratiphy's approval to offer them in a special class of individual savings account (ISA). Stratiphy, a fintech platform, provides users with personalized investment strategies and offers both crypto ETNs and Innovative Finance ISAs (IFISAs). ISAs allow users to save up to £20,000 per year without paying income tax or capital gains tax on returns. Stratiphy will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold.
This development comes after the UK's tax authority, HMRC, classified crypto ETNs as instruments available only in IFISAs from the start of the current tax year. Stratiphy manages £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.