Multi-Billion Dollar UK Fund Cancels $2.58M XRP ETP Investment

London-headquartered fund manager Jupiter pulled out its investment into an XRP-based ETP after its compliance team flagged the exposure as being against regulatory requirements.

Jupiter Asset Management, a prominent fund manager with over $65.8 billion in assets under its purview, invested in an XRP-based exchange-traded product (ETP) offered by 21Shares. The investment was made in the first half of 2023 but was only recently uncovered in a recent report by the Financial Times.

According to the report, the fund manager invested in the XRP ETP using its Gold and Silver Fund, which is domiciled in Ireland. However, the investment was subsequently flagged as non-compliant, as Irish authorities prohibit funds such as Jupiter’s from investing in cryptocurrencies.

Jupiter’s Gold and Silver Fund must comply with a set of rules called UCITS (Undertakings for the Collective Investment in Transferable Securities). Ireland extends its UCITS requirements to prevent funds from investing in cryptocurrencies. However, the Financial Times report reads that other countries, such as Germany, allow for such an investment, as evidenced by “DWS’s Fintech fund,” holding an Ethereum-based ETP.

Following the review by Jupiter’s compliance team within the same first half of the year, the fund pulled out of the XRP-based ETP, posting an insignificant loss of $834. Notably, the fund did not face any regulatory action for the move but acted in good faith to avoid such an outcome.

Crypto Funds in Demand

The latest development involving Jupiter Asset Management underlines the demand for crypto-based funds amongst institutional players. It also demonstrates that altcoins such as XRP are in demand despite Bitcoin’s dominant market share.

Meanwhile, U.S.-based fund managers such as BlackRock, VanEck, and Franklin Templeton are already moving toward the potential launch of an Ethereum-based ETF. As the industry matures, it cannot be completely ruled out that institutional players may eventually debut products for other cryptocurrencies.

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• Source: https://thecryptobasic.com/2024/02/16/multi-billion-dollar-uk-fund-cancels-2-58m-xrp-etp-investment/?utm_source=rss&utm_medium=rss&utm_campaign=multi-billion-dollar-uk-fund-cancels-2-58m-xrp-etp-investment