Jupiter’s Compliance Department Cancels Investment in Ripple XRP ETP: Report
Jupiter Asset Management's internal compliance team has reportedly canceled its investment in the 21Shares Ripple XRP exchange-traded product (ETP) due to regulatory issues in Ireland. Although the company initially invested more than $2 million, it lost $834 million.
According to a recent Financial Times report, Jupiter invested $2,571,504 in the 21Shares Ripple XRP ETP (AXRP) in the first half of 2023. Meanwhile, the ETP made a 1-year return of 31.7%, but fell 13.2% over the past 6 months.
AXRP was launched in 2011. It follows the performance of XRP, which launched in March 2019. According to the 21Shares website, the ETP has total assets under management (AUM) of $50,497,518.
The report explained that asset managers operating under the Irish UCITS are prohibited from exposure to crypto.
The company has reportedly sold its investment after the compliance team at Jupiter confirmed a trade in one of Ireland's UCIT funds.
Jupiter liquidated its Ripple XRP ETP holdings for $2,570,670, resulting in a loss of $834.
“The trade was taken through our normal regulatory process and then cancelled.”
This comes amid ongoing discussions regarding the potential approval of an XRP exchange-traded fund (ETF), especially after the recent approval of 11 Bitcoin ETFs by the United States Securities and Exchange Commission (SEC).
However, due to legal disputes between Ripple and the SEC over whether XRP qualifies as a security, some analysts think this is unlikely.
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On January 24, Cointelegraph reported that CoinShares head of product Townsend Lansing stated that the XRP ETF would not be viable unless the SEC is forced or agrees to recognize that XRP is not a security.
Meanwhile, Ripple CEO Brad Garlinghouse believes the recent approval of multi-vendor Bitcoin exchange-traded funds (ETFs) in the United States will open the door for more crypto ETFs this year.
However, in a recent interview with CNBC, Garlinghouse stopped short of predicting the XRP ETF will be approved by the US Securities and Exchange Commission (SEC), but expects the Ethereum ETF to get the green light in the near future.
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