Jupiter Asset Management (JUN) is withdrawing its investment in one of its publicly traded cryptocurrency products (ETPs).
JUN, a London-listed company with more than $65.8 billion in assets under management, withdrew its investment due to compliance issues, the Financial Times reported.
The Jupiter Gold & Silver fund invested $2.58 million in the Ripple (XRP) 21Shares ETP in the first half of 2023. However, the investment was flagged by the company’s routine oversight process and was later canceled with a loss of $834.
The FT cited differences in cryptocurrency regulations in Europe as the reason for the cancellation. Therefore, Jupiter Gold & Silver Fund is located in Ireland, where cryptocurrency investments in UCITS funds are prohibited. At the same time, several other European jurisdictions allow investment funds to store cryptocurrencies.
In January, investment firms Invesco and WisdomTree cut management fees for European Bitcoin (BTC)-based exchange products by more than 60%. The reason is that fees for the U.S. spot Bitcoin exchange-traded fund (ETF), which was launched on the market on January 11, were low. According to Gary Buxton, regional head of ETFs at Invesco, the launch of BTC-ETFs in the U.S. “is driving unprecedented growth in the supply of these products.