[ad_1]
London-based asset management firm Jupiter Asset Management has stopped investing in XRP-listed products, citing compliance issues, the Financial Times reported on Friday.
Ireland-based Jupiter Gold & Silver Fund reportedly bought 21Shares’ Ripple XRP ETP for $2.57 million in the first half of 2023.. The investment was later uncovered through the firm’s routine “monitoring process,” after which its compliance team ordered the fund to withdraw its holdings. This resulted in a loss of $834, which Jupiter reportedly recovered in full.
Reportedly, Irish authorities do not allow crypto exposure in funds managed under UCITS (short for Undertakings for Collective Investment in Transferable Securities) The investment was canceled. UCITS is a regulatory framework that establishes the rules for selling mutual funds across European Union member states.
UCITS Funds may hold up to 10% of their portfolio in illiquid assets. However, European regulators have different rules regarding whether these funds can invest in products containing cryptocurrencies. Jupiter Gold & Silver Fund held cryptocurrencies before the Irish government announced its stance on investment, FT reported.
Regulators in Ireland, France and the UK have said UCITS funds cannot invest in crypto assets. Germany, on the other hand, allows UCITS funds to invest in crypto ETPs, provided that the products reflect the value of crypto assets on a one-to-one basis.
21 stocks explained The official Q&A page said there was “no definitive answer” as to whether the company’s ETPs would be eligible for UCITS funding, but said the products were “considered eligible” based on the evaluation.
Jupiter Asset Management did not immediately respond to The Block’s request for further comment.
Disclaimer: The Block is an independent media outlet that delivers news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block remains independently operated to provide objective, impactful, and timely information about the cryptocurrency industry. Current financial disclosure information is as follows:
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
[ad_2]
Source link
