Ripple XRP: upiter’s Regulatory Arm Rescinds Investment in Ripple XRP ETP

Crypto News- Jupiter Asset Management’s internal compliance team has reportedly decided to retract its investment in the 21Shares Ripple XRP exchange-traded product (ETP) due to regulatory concerns in Ireland. Initially, the firm had allocated over $2 million into the fund, resulting in a loss of $834.

Ripple XRP: upiter’s Regulatory Arm Rescinds Investment in Ripple XRP ETP

According to a recent report from the Financial Times, Jupiter invested $2,571,504 into the 21Shares Ripple XRP ETP (AXRP) sometime during the first half of 2023, although the exact date of the initial investment was not specified. While the ETP initially delivered a one-year return of 31.7%, it has experienced a decline of 13.2% over the past six months.

The AXRP ETP, which tracks the performance of XRP, currently stands at $0.55, having been launched in March 2019. As per the 21Shares website, the ETP boasts assets under management (AUM) totaling $50,497,518.

The report elaborated that asset managers operating under Ireland’s Undertakings for Collective Investment in Transferable Securities Directive (UCITS) face restrictions on exposure to cryptocurrencies. Upon the detection of the trade in one of its Irish UCIT funds, Jupiter reportedly opted to divest from the investment. This decision comes amidst ongoing discussions regarding the potential approval of an XRP exchange-traded fund (ETF), especially following the recent approval of 11 spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC).

However, given the legal dispute between Ripple and the SEC concerning whether XRP qualifies as a security, some analysts speculate about the likelihood of such approval.