Jupiter Asset Management Cancels $2.58M Investment in 21Shares XRP ETP Due to Compliance Issues
In Brief
Jupiter Asset Management cancelled its $2.58 million investment in the 21Shares XRP ETP citing compliance issues.
London-based asset management company managing over $65.8 billion — Jupiter Asset Management announced the cancellation of its investment in the cryptocurrency exchange-traded product (ETP) issuer 21Shares’ XRP ETP.
Jupiter Asset Management invested $2.58 million into the ETP during the first half of 2023. However, the investment was scrutinized during the company’s “regular oversight process,” leading to its subsequent cancellation at a loss of $834.
The cancellation stems from divergent cryptocurrency regulations in Ireland and the European Union. Jupiter Asset Management initially executed the investment through its Gold & Silver Fund, domiciled in Ireland, where cryptocurrency investments are prohibited for UCITS funds.
UCITS, or undertaking for collective investment in transferable securities, refers to a set of rules for investment funds outlined by the European Commission.
European Crypto Landscape Requires Cohesive Crypto Regulation
While Ireland restricts cryptocurrency investments in tradable investment funds, other European jurisdictions like Germany permit investment funds to include cryptocurrencies in their portfolios.
Notably, the interest in cryptocurrency investment funds has grown in the European Union, particularly following the introduction of spot Bitcoin ETFs in the United States. However, European Union investors have already been exposed to comparable products through physically backed exchange-traded products (ETPs) since 2019.
Recently, the largest asset management company in the European Union specializing in digital assets, CoinShares reported a $42 million profit in Q4 2023. This growth comes after it faced continuous challenges in 2022. Currently, the company manages total assets equivalent to $5.87 billion.
The recent incident with Jupiter Asset Management highlights the importance of establishing a unified framework for cryptocurrency investments, which becomes even more apparent with the launch of spot cryptocurrency products in the United States, which caused the recent surge in the cryptocurrency markets.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
