Investors in the United Kingdom can once again benefit from holding cryptocurrency exchange-traded notes in a tax-free account, thanks to fintech startup Stratiphy's recent approval. Stratiphy, which allows users to personalize investment strategies, will offer both crypto ETNs and Innovative Finance ISAs. This development comes after the UK's tax authority, His Majesty's Revenue and Customs, classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year.
As a result, last year's decision to lift the ban on retail users accessing crypto ETNs was essentially redundant due to the lack of mainstream investment platforms offering IFISAs. Stratiphy will provide access to three ETNs from 21Shares, including those covering bitcoin, ether, and a combination of BTC and gold.
With 4 million pounds in assets under management for 2,000 retail and corporate clients, Stratiphy's CEO Daniel Gold noted a significant level of interest in these products, citing their potential for diversifying portfolios as a new asset class with low correlation to other asset classes.