The Crypto Roundup: 19 February 2024 | CryptoCompare.com

Jupiter Asset Management has divested its holdings in the 21Shares Ripple XRP ETP (AXRP), incurring a slight financial setback. This decision came after the firm’s internal compliance team identified that the investment did not align with the strict guidelines set forth by Ireland’s Undertakings for Collective Investment in Transferable Securities Directive (UCITS), which notably restricts exposure to cryptocurrencies.

Initially, Jupiter Asset Management had invested $2,571,504 into AXRP during the first half of 2023, drawn by the potential of Ripple’s XRP and the ETP’s promising performance metrics. Despite the AXRP ETP showcasing a commendable one-year return of 31.7%, it has faced a 13.2% decline over the past six months, reflecting the inherent volatility associated with cryptocurrency investments.

The firm’s decision to liquidate its investment resulted in a modest loss of $834, a figure that, while minor in the grand scheme of the firm’s investment portfolio, highlights the financial implications of regulatory compliance.

The AXRP ETP, launched in March 2019, aims to mirror the performance of XRP and has amassed assets under management totaling approximately $50.5 million.

This development highlights the ongoing debate and regulatory uncertainty surrounding the inclusion of crypto assets in UCITS funds across Europe, with regulators in Ireland and France recently expressing reservations about allowing UCITS funds to invest in crypto assets.

In contrast, the German financial regulator permits UCITS funds to have exposure to crypto ETPs, provided they accurately reflect the underlying asset, illustrating the varied regulatory attitudes towards crypto investments within the EU.

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• Source: https://www.cryptocompare.com/email-updates/daily/2024/feb/19/