Following approval, UK investors can once again hold cryptocurrency exchange-traded notes in a tax-free vehicle, thanks to fintech startup Stratiphy. The company will offer crypto ETNs and Innovative Finance ISAs, allowing users to save up to £20,000 per year without incurring income tax or capital gains tax on returns. Stratiphy's platform enables personalized investment strategies and will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold.
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. The move had previously made last year's decision to lift the ban on retail users accessing crypto ETNs redundant, as no mainstream investment platform offered IFISAs with crypto products. Stratiphy, which manages £4 million for 2,000 clients, aims to cater to the growing interest in crypto products as a means of diversifying portfolios.