Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free account, thanks to fintech startup Stratiphy's new offering. Stratiphy, which allows 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. Recently, the UK tax authority classified crypto ETNs as IFISA instruments, making last year's decision to lift the ban on retail access redundant.
Stratiphy will offer access to three 21Shares ETNs, including bitcoin, ether, and a BTC and gold combination. With £4 million managed for 2,000 clients, 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 others.