This company was forced to sell a $2.5 million XRP investment

Jupiter Asset Management recently faced a major challenge with its Irish-based gold and silver fund. The fund's investment in Ripple's XRP exchange-traded product (ETP) had to be reversed.

This event highlights various regulatory challenges regarding crypto investments in the EU.

Why did Jupiter Asset Management return from XRP investment?

According to the Financial Times, this is due to Ireland's strict regulations against the inclusion of crypto assets in Undertakings for Collective Investment in Transferable Securities (UCITS) funds. Jupiter's investment in 21Shares' XRP ETP, originally valued at $2,571,504, contravened Irish laws. Therefore, the Fund had to liquidate this holding.

A Jupiter spokesperson said: “The trade was made through our standard regulatory process and was cancelled.”

Meanwhile, other EU countries, such as Germany, allow more flexibility in crypto investments, including the Ethereum exchange-traded note, as evidenced by the DWS fintech fund. Such differences highlight the need for a uniform regulatory approach across the EU.

Despite the incident, the price of XRP remains unaffected. As of writing, it is trading at $0.5654, up 3% in the last 24 hours.

Read more: How to buy XRP and everything you need to know

Additionally, the Jupiter Fund case sheds light on the broader challenges fund managers face. They must navigate the fine line between exploring new investment opportunities and complying with strict regulatory frameworks. Inconsistencies in regulatory attitudes across the EU further complicate this task, creating a fragmented investment ecosystem.

During the future asset management conference, European regulators expressed reservations about allowing crypto assets in UCITS funds. He suggested that alternative investment funds could suit retail investors seeking crypto exposure. This cautious approach reflects the wider European emphasis on investor protection in authorized fund structures.

Read more: Crypto Regulation: What are the Pros and Cons?

Meanwhile, in the United States, the road to approval of spot XRP ETFs appears to be fraught with challenges, particularly with regulatory uncertainties surrounding Ripple's XRP. BlackRock, a leading global investment firm, has made a conscious decision not to launch the Ripple XRP ETF.