Investment Firm Forced To Sell XRP Worth $2.5 Million: Here’s Why
17 February 2024 - 5:00AM
NEWSBTC
In an unprecedented case that underscores the complex regulatory
environment in the European Union, Jupiter Asset Management was
compelled to divest its XRP Exchange Traded Product (ETP)
investment valued at approximately $2.5 million. This decision
underscores the complexities and regulatory discrepancies within
the European Union concerning cryptocurrency investments. The
Forced XRP ETP Sale The incident, which was initially reported by
the Financial Times, involved Jupiter’s Ireland-domiciled Gold
& Silver fund. The fund had invested $2,571,504 in 21Shares’
Ripple XRP ETP during the first half of 2023, a move that was
subsequently flagged by Jupiter’s compliance department. “The trade
was made, picked up by our regular oversight process and then
cancelled,” a Jupiter spokesperson articulated, emphasizing the
rigorous internal review processes that led to the identification
and rectification of the regulatory misalignment. Related Reading:
XRP Price Alert: Breakout Could Confirm Today Ireland’s firm stance
against incorporating crypto assets into Undertakings for
Collective Investment in Transferable Securities (UCITS) funds
mandated the reversal of this investment. Consequently, the
cryptocurrency ETP holding was sold for $2,570,670, resulting in a
nominal loss of $834, which the firm addressed. “Jupiter sold the
cryptocurrency ETP holding for $2,570,670, at a loss of $834,
according to a financial statement. The firm has made up the
difference,” confirmed a spokesperson from Jupiter. This
development is particularly noteworthy as it contrasts with the
regulatory positions of other EU countries. For instance, Germany’s
regulator permits a more flexible approach, allowing crypto ETP
exposure in UCITS funds under specific conditions, as demonstrated
by DWS’s Fintech fund maintaining an investment in an Ethereum
exchange-traded note. Inconsistent Directives Within The EU The
incident has sparked a broader discussion on the need for a
harmonized regulatory approach within the EU. The discrepancy not
only affects investment strategies but also impacts the overall
investment ecosystem, creating a fragmented market. Related
Reading: $400 XRP Price Point: Analyst Breaks Down The Future Surge
Date This is further complicated by the varying interpretations and
applications of the UCITS directive across different member states,
leading to a lack of clarity and uncertainty for fund managers
looking to innovate their investment portfolios. Regulatory bodies
in Ireland and France have recently affirmed their positions
against the inclusion of crypto assets in UCITS funds, underscoring
a cautious approach towards investor protection within regulated
fund structures. Meanwhile, the UK and Germany adopt distinct
stances, with the latter allowing certain crypto exposures under
defined criteria. This incident is not only highlighting the
complexities involved in navigating the regulatory landscape for
crypto investments but also emphasizes the need for a unified
regulatory framework within the European Union. XRP Price Confirms
Breakout At press time, the XRP price stood at $0.57196. As
predicted yesterday, XRP has managed to break out of the
descending channel and rise above the 20-, 50-, 100- and 200-day
EMA cluster. This means that the XRP bulls have a good chance of
gaining the upper hand again. A breakout above the 0.5 Fibonacci
level at $0.5897 would be another important step. Featured image
from iStock, chart from TradingView.com
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