UK investors can once again benefit from holding cryptocurrency ETNs in a tax-free account, thanks to Stratiphy's approval to offer them in an Individual Savings Account (ISA). According to the Financial Times, Stratiphy, a fintech platform, will provide access to both crypto ETNs and Innovative Finance ISAs. This allows users to save up to £20,000 per year without paying income tax or capital gains tax on returns.
Following the UK tax authority's classification of crypto ETNs as IFISA-only instruments, this move essentially revives last year's decision to lift the ban on retail access to crypto ETNs. Stratiphy will offer three ETNs from 21Shares, including those covering bitcoin, ether, and a combination of BTC and gold.
The London-based platform, which has £4 million in assets under management for 2,000 clients, sees significant interest in these products as a way to diversify portfolios with a new asset class that has low correlation to other classes.