UK Investors Can Now Avoid Duty on Crypto Investments with Tax-Free Bitcoin

Following Stratiphy's approval to offer cryptocurrency exchange-traded notes in a tax-free individual savings account, UK investors can once again hold crypto ETNs without incurring duty. This development comes after the fintech startup received authorization to provide access to three ETNs from 21Shares, covering bitcoin, ether, and a combination of BTC and gold. Stratiphy, a platform allowing 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. The UK's tax authority, HMRC, had previously classified crypto ETNs as instruments only available in IFISAs from the start of the current tax year. Stratiphy's move is expected to revitalize the UK's crypto investment market, which had been criticized for being an outlier among markets where exchange-traded products have made crypto investment available to a broader base of retail investors. With £4 million in assets under management for 2,000 clients, Stratiphy's CEO Daniel Gold noted a significant interest in these products, citing their potential for diversifying portfolios as a new asset class with low correlation to other asset classes.