UK Investors Can Now Avoid Paying Duty on Crypto Investments with Tax-Free Bitcoin

Following approval, UK investors can once again hold cryptocurrency exchange-traded notes in a tax-free vehicle, thanks to fintech startup Stratiphy, as reported by the Financial Times. Stratiphy, a personalized investment strategy platform, is now offering both crypto ETNs and Innovative Finance ISAs. These ISAs allow users to save up to £20,000 per year without paying income tax or capital gains tax on returns. At the end of February, the UK's tax authority classified crypto ETNs as instruments available only in IFISAs from the start of the current tax year. This move had made last year's decision to lift the ban on retail users accessing crypto ETNs redundant, as no mainstream investment platform offered IFISAs with crypto products. 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 noted a significant interest in these crypto products, citing their potential for portfolio diversification with low correlation to other asset classes.