The post Asset manager Jupiter can’t invest in crypto ETFs – Here is why appeared on BitcoinEthereumNews.com.

Jupiter, an esteemed asset management firm, recently found itself at the heart of a regulatory conundrum, showcasing the complex tapestry of regulations governing crypto investments across the European Union. Jupiter’s attempt to navigate these waters underscores the divergent paths taken by EU member states, with Ireland’s strict stance effectively sidelining the firm’s ambitions to embrace crypto through its funds. The Regulatory Maze Jupiter’s foray into cryptocurrency investments hit a significant roadblock, courtesy of its compliance department. The team’s endeavor to include a cryptocurrency exchange-traded product (ETP) in one of its Irish-domiciled Ucits funds was thwarted, shining a light on the intricate and sometimes contradictory regulatory landscape within the EU. This scenario unfolded despite growing enthusiasm among fund managers to incorporate crypto assets into their portfolios, revealing a patchwork of regulatory attitudes that vary sharply from one country to another. Ireland, where Jupiter sought to make its crypto investment, maintains a prohibitive stance on including such assets in Ucits funds. This position starkly contrasts with Germany’s more accommodating approach, as illustrated by DWS’s Fintech fund’s investment in an Ethereum exchange-traded note. The incident with Jupiter involved a $2.57 million investment in 21Shares’ Ripple XRP ETP for its Gold & Silver fund, which was promptly identified and reversed by the firm’s oversight processes, resulting in a minimal loss. This incident highlights Jupiter’s vigilant internal control as well as the lack of regulatory action, indicating a self-regulatory commitment to Ireland’s standards. Although this is Jupiter’s first foray into digital currency, it is noteworthy nevertheless. An earlier cryptocurrency investment that was made in 2017 predates the clarification that the Irish regulator provided on such holdings. This statement provides a clue at the ever-changing nature of regulatory environments and the problems that they provide to asset managers who are keen to investigate the cryptocurrency industry.…

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Filed under: News - @ February 16, 2024 10:12 pm