Business News Report
February 16, 2024

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.

Jupiter Asset Management Divested from 21Shares' XRP ETP due to 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.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, 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.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, 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.

Hot Stories
Join Our Newsletter.
Latest News

The DOGE Frenzy: Analysing Dogecoin’s (DOGE) Recent Surge in Value

The cryptocurrency industry is rapidly expanding, and meme coins are preparing for a significant upswing. Dogecoin (DOGE), ...

Know More

The Evolution of AI-Generated Content in the Metaverse

The emergence of generative AI content is one of the most fascinating developments inside the virtual environment ...

Know More
Join Our Innovative Tech Community
Read More
Read more
Io.net Unveils IO Tokenomics: Sets Maximum Supply At 800M With 50% Distribution To Community
Markets News Report Technology
Io.net Unveils IO Tokenomics: Sets Maximum Supply At 800M With 50% Distribution To Community
April 16, 2024
Magic Square Integrates 1inch Swap API And Initiates SQR Token Swap Competition With $25,000 In Rewards
Business News Report Technology
Magic Square Integrates 1inch Swap API And Initiates SQR Token Swap Competition With $25,000 In Rewards
April 16, 2024
Umoja Joins Forces With Merlin Chain To Release First Bitcoin-Based Synthetic Dollar USDb
Business Markets News Report
Umoja Joins Forces With Merlin Chain To Release First Bitcoin-Based Synthetic Dollar USDb
April 16, 2024
Fake ZOOM-WETH Trading Pair On Uniswap Detected By PeckShield, Chainzoom Postpones Token Generation Event
Markets News Report Technology
Fake ZOOM-WETH Trading Pair On Uniswap Detected By PeckShield, Chainzoom Postpones Token Generation Event
April 16, 2024