Following approval, UK investors can once again utilize a tax-free vehicle for holding cryptocurrency exchange-traded notes, thanks to fintech startup Stratiphy. This development allows users to invest in crypto ETNs and Innovative Finance ISAs, as reported by the Financial Times. ISAs enable users to save up to £20,000 annually without incurring income tax or capital gains tax on returns. Stratiphy will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold.
The UK's tax authority, HMRC, had previously classified crypto ETNs as available only in IFISAs from the start of the current tax year. Stratiphy manages £4 million for 2,000 clients and has seen significant interest in these crypto products, which offer a new asset class with low correlation to other asset classes, making them an interesting way to diversify portfolios.