Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, thanks to fintech startup Stratiphy. The company will provide access to ETNs from 21Shares, including those tracking bitcoin, ether, and a mix of BTC and gold, within a special class of individual savings account (ISA).
This development allows investors to save up to £20,000 annually without incurring income tax or capital gains tax on returns. Stratiphy, which enables users to personalize investment strategies, will offer both crypto ETNs and Innovative Finance ISAs.
The UK's tax authority, HMRC, had previously classified crypto ETNs as only available in IFISAs from the start of the current tax year. Stratiphy will manage £4 million for 2,000 clients, with its CEO noting a significant interest in these products as a means to diversify portfolios with a new asset class having low correlation to other classes.