Following approval, UK investors can once again utilize a tax-free account to hold cryptocurrency exchange-traded notes, thanks to fintech startup Stratiphy. This development allows investors to personalize their investment strategies while avoiding duty on crypto investments. Stratiphy's platform offers both crypto ETNs and Innovative Finance ISAs, enabling users to save up to £20,000 annually without incurring income tax or capital gains tax.
The company has teamed up with 21Shares to provide access to three ETNs, covering bitcoin, ether, and a combination of BTC and gold. This move comes after the UK's tax authority, HMRC, reclassified crypto ETNs, effectively rendering last year's decision to lift the ban on retail access redundant. Stratiphy's CEO, Daniel Gold, noted a significant interest in these products, highlighting their potential for diversifying portfolios with low correlation to other asset classes.