Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, courtesy of fintech startup Stratiphy, as reported by the Financial Times. Stratiphy allows users to customize their investment strategies and is offering both crypto ETNs and Innovative Finance ISAs. These ISAs enable users to save up to £20,000 annually without incurring income tax or capital gains tax on returns. At the end of February, the UK's tax authority classified crypto ETNs as available only in IFISAs from the start of the current tax year.
This move rendered 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 will provide access to three ETNs from 21Shares: 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, noted a significant interest in these products, citing their potential to diversify portfolios as a new asset class with low correlation to other classes.