UK investors can once again benefit from holding cryptocurrency ETNs in a tax-free environment, thanks to Stratiphy's recent approval to offer them in an Innovative Finance ISA. This development allows users to invest in crypto ETNs, including those tracking bitcoin, ether, and a BTC and gold combination, without incurring income tax or capital gains tax on returns.
Stratiphy, a fintech platform offering personalized investment strategies, provides access to these ETNs, which can be held in a tax-free wrapper with an annual savings limit of £20,000. The UK's tax authority, HMRC, had previously classified crypto ETNs as only available in IFISAs, making last year's decision to lift the ban on retail access redundant. Stratiphy's move is expected to revitalize the UK's crypto investment market, with CEO Daniel Gold noting a high level of interest in these products as a means of diversifying portfolios.