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). According to the Financial Times, Stratiphy, a fintech platform, will provide access to crypto ETNs and Innovative Finance ISAs (IFISAs), allowing users to invest up to £20,000 per year without incurring income tax or capital gains tax on returns. ISAs come in various forms, including cash ISAs and stocks and shares ISAs, which invest in equities and exchange-traded instruments.
The UK's tax authority, HMRC, had previously classified crypto ETNs as IFISA-exclusive from April 6, rendering last year's decision to lift the ban on retail access to crypto ETNs redundant. Stratiphy will offer 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, expressed enthusiasm for the products, citing their potential for portfolio diversification and low correlation to other asset classes.