Individual investors in the United Kingdom can now once again access cryptocurrency-based exchange-traded notes (ETNs) through tax-advantaged accounts. This development comes after fintech company Stratiphy received official approval to offer crypto ETNs within Individual Savings Accounts (ISAs), according to reporting by the Financial Times.
Special approval for crypto ETNs
Stratiphy, a London-based fintech platform focusing on personalized investment strategies, has become the first to obtain authorization to provide both crypto ETNs and Innovative Finance ISAs (IFISAs) to its users. The IFISA is a tax-efficient investment instrument in the UK, and Stratiphy is now officially designated to offer crypto ETNs under this structure.
ISAs allow individuals in the UK to invest up to £20,000 each year without paying income tax or capital gains tax on earnings. Until now, the most familiar types were cash ISAs and stocks and shares ISAs. However, following a decision by His Majesty’s Revenue & Customs (HMRC) in late February, from April 6 only IFISAs are permitted to include crypto ETN investments.
New opportunities for crypto investors
Although the ban on individual crypto ETN investments was lifted last year, investors in practice were still unable to participate because there were no main investment platforms offering IFISAs. Even among the few platforms with IFISA options, none previously included crypto products. Stratiphy’s entry into this segment now marks a first for the sector in the UK.
The Financial Times also reported that some market observers have criticized the UK’s restrictive stance. According to these critics, restricting crypto ETNs to IFISA-only platforms puts the UK behind countries like Germany and Switzerland, where retail investors have much broader access to exchange-traded crypto products.
Stratiphy launches three unique ETNs
Stratiphy will provide UK investors with access to three Swiss-listed ETNs from 21Shares, covering Bitcoin, Ether (ETH), and a Bitcoin-gold combination. These new products diversify the current investment landscape, offering British investors alternative portfolio choices.
Since launching in August 2023, Stratiphy has quickly grown to manage £4 million ($5.4 million) in assets for 2,000 individual and institutional customers. The platform has built its reputation in the UK market with highly customizable investment solutions. Founder and CEO Daniel Gold summarized investor sentiment around crypto ETNs in an interview with the Financial Times:
“Interest in these [crypto] products is disproportionately high. From a diversification perspective, they offer a notable new option with low correlation to other asset classes.”—Daniel Gold, Stratiphy CEO
Stratiphy had not yet responded to CoinDesk’s request for comment at the time of publication.
