UK investors can once again benefit from tax-free cryptocurrency investments, thanks to Stratiphy's approval to offer exchange-traded notes (ETNs) in a specialized individual savings account (ISA). This development comes after fintech startup Stratiphy received the green light to provide access to these investment products, as reported by the Financial Times. Stratiphy's platform allows users to tailor their investment strategies and offers both crypto ETNs and Innovative Finance ISAs (IFISAs), the authorized wrapper for these investments.
ISAs enable users to save up to £20,000 annually without incurring income tax or capital gains tax on returns. The UK's tax authority, HMRC, had previously classified crypto ETNs as available only in IFISAs from the start of the current tax year, effectively rendering last year's decision to lift the ban on retail access to crypto ETNs redundant.
Stratiphy will provide access to three ETNs from 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, notes that there is significant interest in these products, which offer a unique way to diversify portfolios with low correlation to other asset classes.