UK investors are interested in tax efficient ways to protect and grow their savings. Many people have noticed the meteoric gains being made in cryptocurrencies and blockchain technology like Bitcoin (BTC) and Ethereum (ETH) and they are looking for a way to invest.
This site researches the UK investment market. It highlights instruments and assets for both personal and professional investors interested in Bitcoin.*
* Clicking on a link may generate a referral fee, which allows us to continue to run this site.
The only way for UK retail investors to gain tax-free Bitcoin exposure is via a Stocks and Shares ISA, with the caveat that only a few providers offer stocks that work for this purpose. Jump straight to our comparison chart to see these providers, or read on to learn more.
Buying actual Bitcoin through an exchange like Bitstamp gives you one-to-one exposure to the token's ups and downs. Large numbers of professional traders, businesses and growing numbers of retail investors have bought BTC this way, including some high profile cases, like Tesla (Elon Musk) and MicroStrategy (Michael Saylor). Through the scale of their investment, some of these stocks have started to correlate with Bitcoin's movement. And that is how you can get indirect Bitcoin exposure without incurring the tax penalty of buying it directly.
Live BTCGBP chart
Bitcoin is known for its returns and volatility. As you can see from the live chart above, investors have enjoyed substantial returns of over 500% in just the last six months. From Jan 1st 2013 to date, BTC/USD has seen a remarkable CAGR of 220% and the asset's market capitalisation now exceeds $1 Trillion USD.
Significant daily volatility makes the token popular with active traders and longterm growth appeals to investors. The story is changing from BTC as a currency to BTC as a hedge against the future power of USD and inflation. On March 22nd, BTC passed Gold.
Which stocks and shares offer Bitcoin exposure?
As of April 2021, only two stocks are available to UK investors interested in Bitcoin. We plan to update the site when that changes. Join our mailing list to be first to know about any new investment opportunities we find.
MicroStrategy ($MSTR) is a business with historically strong cash flows and a large treasury now held almost entirely in Bitcoin. Michael Saylor, the founder, bought $1billion Bitcoin through the company earlier this year and has been growing this war-chest since. As a result, the company's share price is highly correlated to Bitcoin, so putting $MSTR in your ISA is a reasonable way to gain Bitcoin exposure. See below for all UK ISAs offering $MSTR.
Professional investors - those with £1million of assets - are able to get direct exposure by purchasing shares in a Canadian ETF - the Bitcoin Fund ($QBTC). See options below.
This site aims to provide the latest BTC stock availability for UK ISA investment.
Please let us know if you find any others.
Stocks & Shares ISA Comparison
Which ISA offers Bitcoin exposure?
The following FCA-regulated Stocks and Shares ISA providers are the only ones that we have found offering access to foreign stock markets wit $MSTR and $QBTC
Every adult in the UK has the right to put £20,000 in an ISA every year. This Individual Savings Account is designed to grow* year on year with the money being invested on your behalf. What makes an ISA different from other investments is that all your profit is sheltered from Capital Gains tax.
In 2021, Capital Gains tax stands at 20% for higher rate tax payers and 10% for basic rate payers. When you look at the growth of some investments over the past 12 months you could find yourself paying 20% on almost the entire value of your fund at the time of withdrawal. It is also worth remembering that you cannot carry your allowance forward from one year to the next. If you don't set up an ISA by 5th April, you lose the chance to invest £20,000 tax-free for that tax year.
*Always seek FCA-registered independent financial advice before making any investment. The value of funds can go down as well as up. This site does not offer personal financial advice.