Following approval, UK investors can once again hold cryptocurrency exchange-traded notes in a tax-free environment, thanks to fintech startup Stratiphy. This development allows investors to personalize their investment strategies through Stratiphy's platform, which offers both crypto ETNs and Innovative Finance ISAs.
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, including those tracking bitcoin, ether, and a BTC-gold combination. This move comes after the UK's tax authority, HMRC, classified crypto ETNs as IFISA-only instruments from the start of the current tax year.
Stratiphy, managing £4 million for 2,000 clients, sees significant interest in these crypto products as a means to diversify portfolios with a new, low-correlation asset class.