Jupiter Asset Management, a London-based investment firm with more than $65.8 billion in assets, has withdrawn its decision to invest in the 21Shares Ripple XRP exchange-traded product (ETP), citing Irish regulatory concerns.
Recall how Jupiter Gold & Silver Fund bought 21Shares Ripple XRP ETP in 2023 for $2,571,504.
However, the Irish regulatory framework prohibits exposure to cryptocurrencies in UCITS funds. UCITS (Undertakings for Collective Investment in Transferable Securities) is a regulatory framework established for investment funds by the European Commission.
This restricted the holding of investments by the Fund. According to the Financial Times, Jupiter sold its holdings in the cryptocurrency ETP for $2,570,670, resulting in a loss of $834.
The Jupiter Gold & Silver Fund is managed by Ned Naylor Leyland, Chris Mahoney and Joe Lunn. The company had also invested in cryptocurrencies in 2017, prior to the Irish Financial Regulatory Authority clarifying its holdings.
UCITS funds are allowed to allocate up to 10 percent of their portfolios to illiquid assets, known as the 'trash ratio', although European regulators are divided on whether this includes ETPs that hold cryptocurrencies. ing. Recent indications from Irish and French regulators suggest that UCITS are not allowed to invest in crypto assets.
During a discussion at the Future of Asset Management conference in November, Sian Murphy, head of international finance at the Central Bank of Ireland, expressed skepticism about the introduction of crypto assets into UCITS. . Jessica Reyes, head of the Financial Services Agency's asset management policy division, expressed a similar opinion.
Additionally, UCITS funds in the UK and Germany are also prohibited from investing in crypto assets (in Germany, exposure to crypto ETPs is only allowed if they mirror the underlying assets on a 1:1 basis).
