UK retail investors can again hold cryptocurrency exchange-traded notes (ETNs) in tax-free accounts.

The Block Crypto, a blockchain outlet, reported on Tuesday that startup Stratiphy has secured approval in the UK to operate an Innovative Finance ISA (IFISA) and launched a service that allows retail investors to hold 21Shares crypto ETNs in a tax-free structure.

The move allows Stratiphy users to invest in various crypto ETNs listed by 21Shares within the ISA framework. Investors can gain exposure to digital asset prices through exchange-listed products without directly holding the underlying tokens.

The launch comes as UK tax and regulatory changes take effect. Stratiphy explained that changes to HM Revenue & Customs (HMRC) rules since the start of the current tax year mean crypto ETNs must be held within an IFISA rather than a traditional stocks and shares ISA. Until now, there had been no investment platform licensed to offer both product structures at once.

The UK regulatory environment has also shifted. The Financial Conduct Authority (FCA) lifted in October 2025 a four-year ban that had prevented retail investors from buying crypto ETNs linked to bitcoin or ether. In early 2026, HMRC then barred new purchases from being placed in a general stocks and shares ISA, leaving an effective structure that allows only IFISAs.

Daniel Gold (다니엘 골드), Stratiphy's chief executive, called the change a key turning point for the UK investment market. In a company statement, he said Stratiphy was glad to be at the forefront of the shift and that, as regulatory changes take effect, investors need a simple, compliant route to maintain digital asset exposure. He added that the IFISA approval and partnership with 21Shares provide that solution.

Product provider 21Shares is one of the main players in the global crypto exchange-traded product (ETP) market. The company said that since the London Stock Exchange (LSE) first approved crypto ETNs for retail investors in October 2025, 21Shares products have secured more than 40 percent of the market. Average daily trading value for the LSE's related products was estimated at about 6 million pounds, or about $8.1 million.

The service is not just the addition of another investment product. In the UK, regulatory easing has opened access to crypto ETNs for retail investors, but the way they can be placed into tax-free accounts has become more restricted since the start of this year. With the emergence of a platform holding an IFISA licence, retail investors have secured a route to access crypto ETNs while maintaining tax benefits even after the regulatory changes.

Attention is also expected to focus on whether other UK investment platforms follow the same structure. For now, Stratiphy has moved first with a single solution combining 21Shares products with an IFISA, aiming for a first-mover advantage in the distribution structure for crypto ETNs for UK retail investors.