UK investors can once again hold cryptocurrency ETNs in a tax-free account, thanks to Stratiphy's approval to offer them in an individual savings account (ISA). Stratiphy, a fintech platform, provides personalized investment strategies and offers both crypto ETNs and Innovative Finance ISAs (IFISAs). ISAs allow users to save up to £20,000 per year without paying income tax or capital gains tax on returns.
Following HMRC's classification of crypto ETNs as IFISA-only instruments, Stratiphy's move essentially revives last year's decision to lift the ban on retail access to crypto ETNs. The platform will offer three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold, with £4 million in assets under management for 2,000 clients. According to CEO Daniel Gold, there is significant interest in these products, which offer a new asset class with low correlation to other assets, making them an interesting way to diversify portfolios.