Following Stratiphy's approval to offer cryptocurrency exchange-traded notes in a special class of individual savings account, UK investors can once again hold crypto ETNs in a tax-free vehicle. Stratiphy, a fintech platform, provides users with personalized investment strategies and is now offering both crypto ETNs and Innovative Finance ISAs. These ISAs allow users to save up to £20,000 annually without paying income tax or capital gains tax on returns. The UK's tax authority, HMRC, had previously classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year.
Stratiphy will provide access to three ETNs from 21Shares, including those covering bitcoin, ether, and a combination of BTC and gold. The London-based investment platform, which manages £4 million for 2,000 clients, has seen significant interest in these crypto products, citing their potential to diversify portfolios with low correlation to other asset classes.