UK Startup Launches Crypto ETNs in IFISAs

A UK fintech startup has launched a new investment platform allowing retail investors to hold cryptocurrency-linked exchange-traded notes within tax-advantaged accounts, providing a workaround to recent regulatory restrictions on such products.

Stratiphy, which began operations last August, announced on Wednesday that it will enable clients to access three exchange-traded notes issued by 21Shares through an Innovative Finance Individual Savings Account, or IFISA. These notes track the performance of Bitcoin, Ethereum, and a hybrid product combining Bitcoin and gold exposure. The structure shields potential gains from capital gains tax, appealing to investors navigating the volatility of digital assets. Prior to this, no platform had integrated crypto-linked notes with IFISAs, leaving users with few compliant options for tax-efficient holdings.

The initiative responds to changes by HM Revenue and Customs, which at the start of the current tax year barred new purchases of crypto exchange-traded notes from standard stocks and shares ISAs, the most widely used tax-free savings vehicles for millions of Britons. Eligibility for these notes now falls solely under IFISAs, typically...