Jupiter Asset Management's Ripple XRP ETP Investment Rescinded, Results in $834 Loss
Summary:
Jupiter Asset Management's internal compliance team has reportedly nullified the firm's investment in the 21Shares Ripple XRP exchange-traded product (ETP), leading to a loss of $834. While the regulatory environment remains uncertain for XRP, with ongoing discussion about potential ETF approval amidst legal disputes, CEO of Ripple, Brad Garlinghouse, hints that the recent approval of Bitcoin ETFs could open doors for more crypto ETFs, including possibly Ethereum.
The international investment firm, Jupiter Asset Management, allegedly saw its stake in the 21Shares Ripple XRP exchange-traded product (ETP) rescinded by the company’s internal regulators. Even with an initial investment that exceeded $2 million, Jupiter faced a loss of $834. As detailed by The Financial Times, Jupiter's original investment in the 21Shares Ripple XRP ETP (AXRP) during 2023's first half equaled $2,571,504; however, the exact date hasn't been revealed. In the last year, the ETP has provided a return of 31.7%, although it has faced a 13.2% drop within the last six months. Launched in March 2019, the AXRP tracks the performance of XRP (XRP), and, as per the 21Shares site, the ETP's assets under management (AUM) rest at $50,497,518. Restrictions apply due to the Irish Undertakings for Collective Investment in Transferable Securities Directive (UCITS) keeping asset managers from involving themselves in cryptocurrency. After the compliance team spotted the trade, Jupiter reportedly withdrew. The sale of Jupiter’s Ripple XRP ETP saw a return of $2,570,670, resulting in a $834 loss. “The transaction was executed, identified through our regular review mechanism, and subsequently annulled.” During this period, discussions on the potential endorsement of an XRP exchange-traded fund (ETF) continue, particularly following the U.S. Securities and Exchange Commission (SEC) approval of 11 Bitcoin ETFs. Nevertheless, due to a legal conflict between Ripple and the SEC over XRP's status as a security, it is conjectured the approval might likely be disputed. Related: In the 2024 elections, John Deaton, a pro-XRP lawyer, may compete against Elizabeth Warren. It was reported by Cointelegraph on January 24, that CoinShares’ product head, Townsend Lansing, mentioned an XRP ETF approval is improbable, unless the SEC decides or is forced to concede that XRP is not a security. Meanwhile, Ripple's CEO, Brad Garlinghouse, predicts that the U.S.’s recent approval of multiple Bitcoin ETFs will pave the way for more cryptocurrency ETFs this year. However, in an interview with CNBC, Garlinghouse would not explicitly predict an XRP ETF approval, but he does foresee an Ethereum ETF approval in the near future. Magazine: Ran Neuner of Crypto Banter deems Ripple ‘unscrupulous,’ tips hat to ZachXBT: Hall of Flame.
Published At
2/17/2024 9:01:33 AM
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