Jupiter Asset Management Disposes of $2.5 Million XRP Investment Amid Regulatory Concerns
London-based investment firm Jupiter Asset Management, known as JUN, recently had to sell off a significant investment in Ripple’s XRP due to regulatory issues. With over $65.8 billion in assets under management, Jupiter faced obstacles in holding a cryptocurrency exchange-traded product in one of its Irish Ucits funds. This highlights the divergent regulatory approaches to cryptocurrencies within the European Union (EU).
The situation faced by Jupiter is not unique, as many investment managers are keen to include cryptocurrencies in their funds but struggle to do so consistently across the EU. In the first half of 2023, Jupiter’s Gold & Silver fund invested $2.58 million in 21Share’s XRP. However, during routine checks, concerns arose, leading to the cancellation of the investment and a loss of $834.
The primary reason behind this abrupt cancellation is the differing crypto regulations across Europe. Jupiter’s Gold & Silver fund, based in Ireland, faced restrictions that prohibited crypto investments for UCITS funds. This incident highlights the need for a standardized set of rules governing crypto investments, particularly as the crypto market continues to thrive following the introduction of new crypto products in the United States.
While some EU countries, such as Germany, allow for more flexibility in crypto investments, as seen in DWS’s Fintech fund incorporating an Ethereum exchange-traded note, Jupiter’s experience underscores the urgent necessity for a consistent regulatory approach across the EU. These regulatory disparities present challenges for fund managers navigating the complex landscape of cryptocurrency investments.
Despite Jupiter Asset Management’s withdrawal from XRP, the price of the cryptocurrency has remained stable. As of the latest update, XRP is trading at $0.574, reflecting a 3% increase over the past 24 hours. This resilience in the XRP price highlights the strength of the crypto market and emphasizes the importance of clear and consistent guidelines to maintain a stable investment environment.