Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, as fintech startup Stratiphy is now offering them in a special class of individual savings account. Stratiphy, a platform allowing users to personalize investment strategies, will provide both crypto ETNs and Innovative Finance ISAs.
ISAs enable users to save up to £20,000 annually without paying income tax or capital gains tax on returns. The UK's tax authority, HMRC, had classified crypto ETNs as available only in IFISAs from the start of the current tax year. This move had essentially made the previous decision to lift the ban on retail users accessing crypto ETNs redundant. Stratiphy will offer access to three ETNs from 21Shares, including those covering bitcoin, ether, and a combination of BTC and gold.
The investment platform, which manages £4 million for 2,000 clients, has seen significant interest in these products. According to CEO Daniel Gold, crypto investments provide a unique way to diversify portfolios due to their low correlation with other asset classes.