Following approval, UK investors can once again utilize cryptocurrency exchange-traded notes in a tax-free vehicle, thanks to fintech startup Stratiphy. This development allows investors to hold crypto ETNs in a special class of individual savings account, as reported by the Financial Times. Stratiphy, a platform that enables users to personalize investment strategies, is offering both crypto ETNs and Innovative Finance ISAs. These ISAs permit users to save up to 20,000 pounds annually without incurring income tax or capital gains tax on returns.
The UK's tax authority, HMRC, had previously classified crypto ETNs as available only in IFISAs from the start of the current tax year. This move had rendered the decision to lift the ban on retail users accessing crypto ETNs redundant, as no mainstream investment platform offered IFISAs with crypto products.
Stratiphy will provide access to three 21Shares ETNs, including those covering bitcoin, ether, and a combination of BTC and gold. With 4 million pounds in management for 2,000 clients, Stratiphy's CEO, Daniel Gold, noted a significant interest in these products, citing their potential to diversify portfolios as a new asset class with low correlation to other classes.