Following approval, UK investors can once again utilize cryptocurrency exchange-traded notes (ETNs) in a tax-free vehicle, thanks to fintech startup Stratiphy. This comes after Stratiphy received authorization to offer them in a special class of individual savings account (ISA). Stratiphy, a platform allowing users to personalize investment strategies, will provide both crypto ETNs and Innovative Finance ISAs (IFISAs). ISAs enable users to save up to £20,000 annually without paying income tax or capital gains tax on returns.
The UK's tax authority, His Majesty's Revenue and Customs (HMRC), had classified crypto ETNs as instruments available only in IFISAs from the start of the current tax year. This move had rendered last year's decision to lift the ban on retail users accessing crypto ETNs redundant, as no mainstream investment platform offered IFISAs with crypto products. Stratiphy will offer access to three ETNs provided by 21Shares, covering bitcoin, ether, and a combination of BTC and gold.
With £4 million in assets under management for 2,000 clients, Stratiphy's CEO Daniel Gold noted a significant interest in these products, citing their potential for diversifying portfolios as a new asset class with low correlation to other classes.