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Uncertainty over Crypto Exchange Traded Notes next tax year

ended 31. October 2025

From 8 October 2025, the UK government allowed people to buy Crypto Exchange Traded Notes (crypto ETNs) inside a Stocks and Shares ISA.

A crypto ETN is a type of investment that lets people get exposure to the price of cryptocurrencies (like Bitcoin) without owning them directly.

Right now, people can buy them in an ISA, which means any profits stay tax-free. But confusingly, the government has said that from 6 April 2026, crypto ETNs will no longer be allowed inside Stocks and Shares ISAs. After that, they might only be allowed in a different type of ISA called an Innovative Finance ISA. So if you buy a crypto ETN in your Stocks and Shares ISA today, no one knows what happens next April.

Will you have to sell it?
Will your ISA provider move it somewhere else?
Will it stay where it is but under new rules?

Neither HMRC nor the FCA has confirmed what investors or ISA platforms should do when the tax year changes.

This matters because lack of guidance could lead to confusion, unexpected tax consequences, and potential forced selling early in the next tax year. It also raises broader questions about how the government plans to handle crypto-linked investments as regulation evolves.

3 responses from the Newspage community

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Editor
Philly Ponniah
Chartered Wealth Manager and Financial Coach at Philly Financial
The lack of a joined-up approach isn’t helping providers or retail investors who can finally access crypto-linked investments in a tax-free environment. Without clear guidance, we risk confusion, unexpected tax consequences and forced selling early in the next tax year. It also raises bigger questions about how the government plans to handle crypto-linked investments as regulation continues to evolve.
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Laura Purkess
Personal Finance Expert at Investing Insiders
This is yet another example of a mixed messaging between regulators and government departments leaving investors in limbo through no fault of their own. Innovative finance ISAs (IFISAs) are pretty niche, and a number of the biggest investment platforms have already said they don't intend to offer them, so in theory, investors will be forced to sell these assets come April once they become non-qualifying. But a few years ago, thousands of investors were left in limbo after it came to light that some platforms were selling fractional shares in ISAs, which HMRC said wasn't allowed. The taxman eventually U-turned and agreed to allow it. I imagine this saga will play out in a similar manner: platforms won't adopt IFISAs, so the least complicated course of action will be to simply allow crypto ETNs to continue being held in stocks and shares ISAs. But strap in for potentially months of uncertainty and a long consultation process before a decision is confirmed.
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Scott Gallacher
Director at Rowley Turton
Absolute madness from a government seemingly running out of ideas. ISAs were designed to encourage saving and long-term investing, not short-term crypto speculation. Allowing crypto ETNs inside a Stocks and Shares ISA feels like policy made on the back of an envelope. I doubt the government really understands what crypto is about; it seems more like an attempt to look modern and relevant — a bit like your dad thinking he’s still cool with the kids. The fact that financial institutions are offering crypto ETNs isn’t the same as endorsing them as a good investment idea. These products are complex and potentially riskier than even crypto itself because they also carry counterparty risk. Fundamentally, fund managers make money by managing money — so anything that encourages people to invest, even speculatively, is good for them, but not necessarily for the client.