A UK fintech has launched a service allowing retail investors to hold crypto-linked exchange-traded notes (ETNs) within a tax-advantaged wrapper, creating a new pathway after regulators excluded the products from mainstream savings accounts.
"We’re excited to be at the forefront of this important evolution in the UK investment landscape," Daniel Gold, Chief Executive at Stratiphy, said in a statement. Investors need "a simple and compliant pathway to maintain exposure to digital assets."
The move by Stratiphy follows a key policy shift from HM Revenue & Customs (HMRC) at the start of the current tax year. While the Financial Conduct Authority (FCA) lifted a ban on retail sales of crypto ETNs in October 2025, HMRC subsequently ruled they could only be held in Innovative Finance ISAs (IFISAs), not the more common stocks-and-shares ISAs. As no platform combined crypto ETN access with an IFISA, the change effectively created a dead end for tax-free investing.
Stratiphy’s launch directly addresses this gap, reopening a tax-efficient route for a market showing strong demand. The platform will initially list three ETNs from issuer 21Shares, providing exposure to Bitcoin, Ethereum, and a hybrid product blending Bitcoin and gold. This structure allows investors to shield potential gains from capital gains tax, a significant advantage given the asset class's volatility.
The decision by HMRC to exclude crypto ETNs from standard ISAs limited their appeal despite the FCA's green light. While platforms including Interactive Investor, Freetrade, and Revolut made the products available, none offered them within an IFISA wrapper. This left a clear gap between investor demand for tax efficiency and the available product structures.
Stratiphy, which launched last August, is the first to bridge this divide. The development is significant as the broader UK regulatory framework for digital assets continues to take shape. The FCA is advancing a set of consultations aimed at establishing a comprehensive crypto regulatory regime, expected to take full effect by October 2027, which will cover trading, custody, and staking services.
Investors should note, however, that assets held in an IFISA fall outside the protection of the UK’s Financial Services Compensation Scheme (FSCS).
This article is for informational purposes only and does not constitute investment advice.
