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.