Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free vehicle, after Stratiphy, a fintech startup, received authorization to offer them in a special class of individual savings account. Stratiphy, which allows users to personalize investment strategies, is offering 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's tax authority classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year. This decision had made last year's lift on the ban of retail users accessing crypto ETNs redundant. Stratiphy will provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold. The platform, which manages £4 million for 2,000 clients, sees significant interest in these crypto products, citing their potential to diversify portfolios as a new asset class with low correlation to other classes.