Following approval, UK investors can once again utilize a tax-free vehicle to hold cryptocurrency exchange-traded notes, thanks to fintech startup Stratiphy. The company will provide both crypto ETNs and Innovative Finance ISAs, allowing users to save up to £20,000 per year without incurring income tax or capital gains tax on returns.
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 will offer access to three ETNs provided by 21Shares, including those covering bitcoin, ether, and a combination of BTC and gold. The London-based investment platform 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, providing an interesting way to diversify portfolios.