The investment in the XRP product was canceled due to crypto investment rules in Ireland.
The asset manager had to quickly scrap the investment at a loss of $834.
Jupiter Asset Management (JUN), the London-listed firm with assets under management of over $65.8 billion, had to scrap an investment in one of the crypto exchange-traded products (ETP) due to a compliance issue, the FT reported on Friday.
Jupiter’s Gold & Silver fund had invested $2.58 million in 21Shares’ Ripple XRP ETP during the first half of 2023. However, the investment was flagged by the company’s “regular oversight process” and was later canceled at a loss of $834, according to the report.
The reason for the cancellation is the divergent crypto regulation in Europe. Jupiter’s n Gold & Silver is domiciled in Ireland, where crypto investments are prohibited in Ucits or tradable investment funds. Other European jurisdictions like Germany allow investment funds to hold crypto.
Jupiter’s crypto investment issue highlights the need for a unified crypto investment framework, even as the start of spot crypto products in the U.S. has fuelled the latest bull run in the crypto markets.
Jupiter did not immediately respond to CoinDesk’s request for comment.
