Following approval, UK investors can once again hold cryptocurrency exchange-traded notes in a tax-free individual savings account, thanks to fintech startup Stratiphy. The company will provide access to crypto ETNs and Innovative Finance ISAs, allowing users to save up to 20,000 pounds a year without paying income tax or capital gains tax on returns.
This development comes after the UK's tax authority, HMRC, classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year. Stratiphy will offer three ETNs from 21Shares, including those covering bitcoin, ether, and a combination of BTC and gold. The London-based investment platform manages 4 million pounds for 2,000 retail and corporate clients and has seen a high level of interest in these crypto products, citing their potential to diversify portfolios with low correlation to other asset classes.