Following approval, UK investors can once again invest in cryptocurrency ETNs through a tax-free vehicle, after Stratiphy, a fintech startup, received the green light to offer them in an Individual Savings Account (ISA). According to the Financial Times, Stratiphy will provide both crypto ETNs and Innovative Finance ISAs, allowing users to invest up to 20,000 pounds per year without paying income tax or capital gains tax on returns. This development comes after the UK's tax authority, HMRC, classified crypto ETNs as only available in IFISAs from April 6, rendering last year's decision to lift the ban on retail users accessing crypto ETNs redundant. Stratiphy will offer three ETNs provided by 21Shares, covering bitcoin, ether, and a combination of BTC and gold, with the London-based investment platform managing 4 million pounds for 2,000 clients.
CEO Daniel Gold noted that there is a high level of interest in these products, citing them as a unique way to diversify portfolios with low correlation to other asset classes.