Ireland’s laws governing cryptocurrency investments led to the cancellation of the XRP product investment. The asset manager was forced to rapidly write off the $834 loss on the investment.
A regulatory concern forced Jupiter Asset Management (JUN), a London-listed company with over $65.8 billion in assets under management, to abandon an investment in a cryptocurrency exchange-traded product (ETP), according to a Friday story in the Financial Times.
During the first half of 2023, $2.58 million was invested in 21Shares’ Ripple XRP ETP by Jupiter’s Gold & Silver fund. The investment was then cancelled for a loss of $834, however, after being reported by the company’s “regular oversight process.”
The different cryptocurrency regulations in Europe are the cause of the cancellation. Jupiter’s Gold & Silver fund is based in Ireland, a country that forbids UCITS funds from making cryptocurrency investments. Investment funds are permitted to hold cryptocurrency in other European countries, such as Germany.
The European Commission has established a set of guidelines for investment funds known as UCITS, or undertaking for collective investment in transferable securities.
Even though the introduction of spot cryptocurrency products in the United States has fueled the most recent bull run in the crypto markets, Jupiter’s crypto investing issue emphasises the need for a consistent framework for crypto investments.