Stratiphy has introduced a new route for UK investors to regain tax-free exposure to crypto ETNs after recent rule changes limited access.
Summary
- Stratiphy launched a new offering that allows UK investors to access crypto ETNs through Innovative Finance ISAs after tax rule changes restricted eligibility.
- HM Revenue and Customs had removed crypto ETNs from standard ISAs, leaving investors without a viable tax-free route until this structure emerged.
According to the Financial Times, the fintech platform is offering crypto exchange-traded notes through Innovative Finance (IF) ISAs, a structure that remains eligible for tax benefits after authorities tightened rules earlier this year.
The move follows a series of regulatory changes that first reopened, then restricted, retail access to crypto-linked investment products. In October 2025, the Financial Conduct Authority lifted its long-standing ban on crypto ETNs, allowing retail investors to access instruments tied to assets such as Bitcoin and Ethereum through standard stocks and shares ISAs.
A fresh hurdle emerged at the start of the new tax year after HM Revenue & Customs ruled that new purchases of crypto ETNs would no longer qualify for traditional ISAs. Eligibility was limited instead to IF ISAs, which are typically used for peer-to-peer lending products and rarely supported alongside mainstream investment offerings.
Lack of platforms combining both services left investors with limited options despite the FCA’s earlier policy change.
Stratiphy’s launch addresses that gap by offering three ETNs issued by 21Shares, covering Bitcoin, Ether, and a hybrid product combining Bitcoin and gold exposure.
Platforms offer ETNs without IF ISA support
Crypto ETNs remain available through platforms such as Interactive Investor, Freetrade, and Revolut, though none currently provide IF ISAs. Accounts under that structure also fall outside the UK’s Financial Services Compensation Scheme, leaving investors without the same level of protection as other savings products.
Regulatory oversight has also come into focus elsewhere. Trading 212 reportedly allowed UK retail users to trade crypto ETNs without proper authorization before later moving to secure approval following contact from regulators.
Demand for regulated crypto exposure builds
Market interest in crypto ETNs has been building despite the regulatory friction. An October 2025 report from IG Group projected that the UK crypto market could expand by as much as 20% following the reopening of ETNs.
Research from the firm suggested nearly 30% of UK adults would consider investing in crypto through these products, citing regulated access and perceived safety as key factors.
FCA prepares crypto framework
As previously reported by crypto.news, the Financial Conduct Authority has been advancing its broader crypto oversight plans. The regulator has opened consultations on guidance tied to a new framework expected to take effect on October 25, 2027.
Proposals under review cover areas including stablecoin issuance, trading, custody, and staking, with firms expected to obtain FCA authorization under the upcoming regime.
Ongoing consultations, released in phases since late 2025, are intended to give companies time to prepare as the UK moves toward a more defined regulatory structure for digital assets.
