Jupiter Asset Management canceled its $2.58 million investment in the 21Shares XRP ETP due to compliance issues.
Posted: February 16, 2024 7:11 AM Updated: February 16, 2024 7:11 AM
Correction and fact check date: February 16, 2024, 7:11 AM
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Jupiter Asset Management canceled its $2.58 million investment in the 21Shares XRP ETP, citing compliance issues.
London-based asset management company $65.8 billion — Jupiter Asset Management announced the cancellation of its investment in the XRP ETP of cryptocurrency exchange-traded product (ETP) issuer 21Shares.
Jupiter Asset Management Investment 2.58 million dollars It was incorporated into ETP in the first half of 2023. However, during the company’s “routine oversight process,” the investment came under scrutiny and was subsequently canceled with a loss of $834.
This cancellation is due to differences in cryptocurrency regulations in Ireland and the European Union. Jupiter Asset Management initially made the investment through the Ireland-based Gold & Silver Fund, which is prohibited from investing in cryptocurrencies for UCITS funds.
UCITS, or collective investment schemes in transferable securities, refers to a set of rules for investment funds specified by the European Commission.
The European cryptocurrency landscape needs cohesive crypto regulation
Ireland restricts cryptocurrency investments to tradable investment funds, while other European jurisdictions, such as Germany, allow investment funds to include cryptocurrencies in their portfolios.
Interest in cryptocurrency investment funds has increased in the European Union, especially after the introduction of spot Bitcoin ETFs in the United States. However, EU investors have already been exposed to similar products through physically backed exchange-traded products (ETPs) since 2019.
Recently, CoinShares, the European Union’s largest asset management firm specializing in digital assets, reported revenue of $42 million for the fourth quarter of 2023. This growth comes after the company faces continued challenges in 2022. Currently, the company has total assets under management amounting to $5.87 billion.
The recent incident at Jupiter Asset Management highlights the importance of building an integrated framework for cryptocurrency investing, which has become even more evident with the recent launch of spot cryptocurrency products in the US that has led to a surge in the cryptocurrency market.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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