Following approval, UK investors can once again utilize a tax-free vehicle for holding cryptocurrency exchange-traded notes, courtesy of fintech startup Stratiphy's individual savings account offering. This development allows investors to personalize their investment strategies through Stratiphy's platform, which includes both crypto ETNs and Innovative Finance ISAs. These accounts enable users to save up to £20,000 annually without incurring income tax or capital gains tax on the returns. The UK's tax authority had previously restricted crypto ETNs to IFISAs from the start of the current tax year.
Stratiphy will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combined BTC and gold product, offering an alternative for investors seeking to diversify their portfolios with a new asset class that has low correlation to other asset classes.