Following approval, UK investors can once again hold cryptocurrency exchange-traded notes in a tax-free individual savings account, thanks to fintech startup Stratiphy. This development allows users to invest in crypto ETNs and Innovative Finance ISAs, which permit investments in these products, as reported by the Financial Times.
ISAs enable users to save up to £20,000 annually without incurring income tax or capital gains tax on returns. The UK's tax authority, HMRC, had earlier classified crypto ETNs as available only in IFISAs from the start of the tax year. Stratiphy will provide access to three 21Shares ETNs, 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 notes a high level of interest in these products, citing their potential for portfolio diversification as a new asset class with low correlation to other assets.