Following approval, UK investors can once again hold cryptocurrency ETNs in a tax-free vehicle, after Stratiphy, a fintech startup, was given the green light to offer them in an Individual Savings Account (ISA). According to the Financial Times, Stratiphy will provide access to both crypto ETNs and Innovative Finance ISAs, allowing users to invest up to £20,000 per year without paying income tax or capital gains tax on returns.
This development comes after the UK's tax authority classified crypto ETNs as only available in IFISAs from the start of the current tax year. Stratiphy will offer three ETNs provided by 21Shares, including those covering bitcoin, ether, and a combination of BTC and gold. The investment platform, which manages £4 million for 2,000 clients, has seen significant interest in these products, with its CEO noting that they offer a unique way to diversify portfolios with low correlation to other asset classes.