Following approval, UK investors can once again hold cryptocurrency exchange-traded notes in a tax-free account, thanks to fintech startup Stratiphy. This development allows users to personalize their investment strategies, with both crypto ETNs and Innovative Finance ISAs available.
ISAs permit users to save up to £20,000 annually without incurring income tax or capital gains tax on returns. Recently, the UK tax authority classified crypto ETNs as instruments only accessible through IFISAs, rendering last year's decision to lift the ban on retail access redundant. Stratiphy will provide access to three ETNs from 21Shares, including bitcoin, ether, and a BTC and gold combination. The platform, which manages £4 million for 2,000 clients, has seen significant interest in these products, citing their potential to diversify portfolios as a new asset class with low correlation to other asset classes.