Investors in the UK can once again benefit from holding cryptocurrency exchange-traded notes in a tax-free account, thanks to Stratiphy's approval to offer them in an Innovative Finance ISA. This development allows users to save up to £20,000 per year without incurring income tax or capital gains tax on their returns. Stratiphy, a fintech platform, will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of bitcoin and gold.
This move comes after the UK's tax authority, HMRC, classified crypto ETNs as only available in IFISAs from the start of the current tax year. The decision had previously made it difficult for retail users to access crypto ETNs, but Stratiphy's offering is set to change this. According to CEO Daniel Gold, there is a high level of interest in these products, which offer a unique way to diversify investment portfolios with a new asset class that has low correlation to other asset classes.