Following approval, UK investors can once again hold cryptocurrency exchange-traded notes in a tax-free vehicle, thanks to fintech startup Stratiphy's new offering. This development allows users to personalize their investment strategies while avoiding duty on crypto investments. Stratiphy's platform provides access to both crypto ETNs and Innovative Finance ISAs, with the latter authorized to invest in them.
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 previously classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year.
Stratiphy will offer three ETNs from 21Shares, covering bitcoin, ether, and a combination of bitcoin and gold. With £4 million in assets under management for 2,000 clients, Stratiphy's CEO notes a significant interest in these products as a means to diversify portfolios with a new asset class that has low correlation to other classes.