Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free individual savings account (ISA) through fintech startup Stratiphy. Stratiphy, which allows users to personalize investment strategies, will offer crypto ETNs and Innovative Finance ISAs (IFISAs). ISAs enable users to save up to £20,000 annually without paying income tax or capital gains tax on returns. After the UK's tax authority, HMRC, classified crypto ETNs as IFISA-exclusive from April 6, Stratiphy's move counters the redundancy of last year's lifted ban on retail access to crypto ETNs.
Stratiphy will provide access to 21Shares' ETNs covering bitcoin, ether, and a BTC-gold combination. With £4 million in assets under management for 2,000 clients, Stratiphy's CEO Daniel Gold noted a high interest in these products as a means to diversify portfolios with a new, low-correlation asset class.