Jupiter Compliance Revokes Ripple XRP ETP Investment

Jupiter Asset Management withdrew its investment in the 21Shares Ripple XRP ETP due to regulatory concerns in Ireland resulting in a loss of $834.

Owing to regulatory concerns in Ireland, Jupiter Asset Management’s internal compliance team reportedly withdrew its investment in the 21Shares Ripple XRP exchange-traded product (ETP).

The company lost $834 on its initial over $2 million investment in the fund.Jupiter put $2,571,504 into the 21Shares Ripple XRP ETP (AXRP) in the first half of 2023, according to a recent Financial Times report. But it wasn’t made clear when the first investment was made.

In contrast, the ETP produced a 31.7% return over the course of a year but over the last six months it has decreased by 13.2%. The AXRP, introduced in March 2019, monitors XRP (XRP) performance. The ETP has $50,497,518 in assets under management (AUM), according to the 21Shares website.

The study clarified that asset managers are prohibited from dealing with cryptocurrency while they operate under Ireland’s Undertakings for Collective Investment in Transferable Securities Directive (UCITS). According to reports, Jupiter disposed of the investment after discovering the deal in one of its Irish UCIT funds.

At a loss of $834, Jupiter sold its Ripple XRP ETP stake for $2,570,670.This is in the midst of continuous debate on the possible establishment of an exchange-traded fund (ETF) for XRP, especially in light of the US Securities and Exchange Commission’s (SEC) recent approval of 11 spot Bitcoin ETFs.

However, other analysts surmise that it could be improbable given the ongoing legal battle between Ripple and the SEC over whether or not XRP counts as a security. On january 24 Townsend Lansing, the head of product at CoinShares, stated that an XRP ETF wouldn’t be possible until the SEC was coerced into admitting that XRP isn’t a security.

The CEO of Ripple, Brad Garlinghouse, thinks that additional cryptocurrency exchange-traded funds (ETFs) will be allowed in 2024 as a result of the recent approval of a number of spot Bitcoin ETFs in the US. Though he refrained from making a clear prediction regarding the approval of an XRP ETF by the SEC, Garlinghouse did anticipate that an Ethereum ETF would be approved soon in a recent interview with CNBC.