Jupiter Asset Management has withdrawn its $2.58 million investment in 21Shares' XRP ETP, citing issues concerning compliance.
In Brief
The asset management firm, Jupiter Asset Management, has officially retracted its investment of $2.58 million in the XRP ETP offered by 21Shares, pointing to compliance challenges as the reason.
This London-headquartered asset management firm, with an impressive portfolio exceeding $65.8 billion, has announced its decision to cancel the investment in the XRP ETP issued by 21Shares. Jupiter Asset Management Initially, Jupiter Asset Management had placed an investment of $2.58 million in the XRP ETP within the first half of 2023. However, during a routine oversight, questions about its compliance led to the decision to withdraw, resulting in a loss of $834.
The decision to cancel the investment is rooted in the differing regulations surrounding cryptocurrencies between Ireland and the broader European Union. Jupiter initially invested through its Gold & Silver Fund based in Ireland, which prohibits UCITS funds from engaging in cryptocurrency investments.
UCITS, or Undertakings for Collective Investment in Transferable Securities, encompass a set of regulations governing investment funds in the European context.
The cryptocurrency landscape in Europe necessitates a more cohesive regulatory framework.
While Ireland imposes restrictions on cryptocurrency investments within tradable investment funds, other regions in Europe, like Germany, allow the inclusion of cryptocurrencies in their investment fund portfolios.
Interestingly, there's been a noticeable surge in interest towards cryptocurrency investment funds within the European Union, especially since the recent movements within the U.S. Meanwhile, European Union investors have had access to similar products via physically-backed exchange-traded products (ETPs) since 2019.
CoinShares, the largest asset management firm in the European Union focusing on digital assets, recently reported a noteworthy recovery in Q4 2023, bouncing back after a challenging year in 2022. They now manage assets totaling approximately $5.87 billion. grown The recent events involving Jupiter Asset Management underscore the critical need for a unified regulatory approach to cryptocurrency investments, which becomes increasingly vital following the launch of spot cryptocurrency products in the United States—events that have notably influenced the cryptocurrency market. spot Bitcoin ETFs Please be advised that the information presented here should not be considered as legal, financial, investment, or any type of professional advice. It is essential to invest only what you can afford to lose and to consult with a financial professional if you're uncertain. For more details, we recommend checking the issuer’s or advertiser’s terms and conditions as well as their help and support sections. MetaversePost strives for accurate and unbiased reporting; however, market conditions can evolve rapidly and without prior notification.
Alisa, a passionate journalist at Metaverse Post, has a deep specialization in cryptocurrency, zero-knowledge proofs, investment strategies, and the vast world of Web3. With her sharp insight into emerging trends and innovations, she brings thorough and engaging coverage to keep readers informed about the dynamic landscape of digital finance. $42 million profit Enso, LayerZero, and Stargate are collaborating to facilitate one of the most significant migrations of liquidity on Ethereum to Unichain.
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