Key Highlights

  • From April 6, 2026, UK investors can hold Bitcoin and Ethereum exchange-traded notes inside an Innovative Finance ISA, keeping capital gains tax-free.

  • HMRC reclassified crypto ETNs out of standard Stocks and Shares ISAs into the IFISA category, while protecting existing pre-April 6 holdings automatically.

  • Fintech platform Stratiphy became the first IFISA manager to offer crypto ETNs in this structure.


UK retail investors have a working route back into tax-free crypto exposure. From April 6, the start of the new tax year, Bitcoin and Ethereum exchange-traded notes can be held inside an Innovative Finance ISA, shielding gains from capital gains tax under the same wrapper rules that apply to other ISA assets. The shift follows an HMRC policy published in October 2025, which reclassified crypto ETNs as qualifying IFISA investments rather than standard Stocks and Shares ISA assets.


The Financial Conduct Authority lifted its retail ban on crypto ETNs in October 2025, opening the door for these products to reach everyday investors for the first time. HMRC's decision to route them through the IFISA rather than the broader Stocks and Shares ISA reflects what the regulator describes as balancing "investor choice" against "managing risk responsibly," given the asset class's relative novelty. 


The practical effect is that new purchases of crypto ETNs must go through an IFISA-approved platform. Investors who held crypto ETNs in a Stocks and Shares ISA before April 6 do not need to sell; those positions have been automatically reclassified to IFISA treatment.


Only 57 platforms held IFISA manager authorisation at the time of the policy shift, and the majority had no plans to offer crypto products. Stratiphy stepped into that gap. The fintech firm received IFISA manager approval and launched three 21Shares products through its platform: a pure Bitcoin ETN, a pure Ethereum ETN, and a hybrid Bitcoin-plus-gold product aimed at investors who want partial commodity exposure alongside the crypto allocation.


The £20,000 annual ISA limit applies across all ISA types combined, so investors using the IFISA route for crypto cannot separately max out a Stocks and Shares ISA in the same tax year without accounting for the shared limit.