The Sale of XRP ETP
Jupiter Asset Management was forced to sell its XRP Exchange Traded Product (ETP) investment worth $2.5 million due to regulatory discrepancies within the European Union. The incident involved Jupiter’s Gold & Silver fund, which had invested in 21Shares’ Ripple XRP ETP. Jupiter’s compliance department flagged the investment, leading to its reversal.
Jupiter sold the cryptocurrency ETP holding for $2,570,670 at a loss of $834. This decision was influenced by Ireland’s firm stance against including crypto assets in UCITS funds. In contrast, other EU countries like Germany have more flexible regulations that permit crypto ETP exposure under specific conditions.
Inconsistent Directives Within the EU
This incident highlights the need for a harmonized regulatory approach within the EU. The varying interpretations and applications of the UCITS directive across member states create a fragmented market and lack of clarity for fund managers. Countries like Ireland and France are cautious about including crypto assets in UCITS funds, while the UK and Germany have different stances.
XRP Price Breakout
As of now, the XRP price is $0.57196 and has broken out of its descending channel. It has risen above multiple EMA clusters, indicating a potential advantage for XRP bulls. A breakout above the 0.5 Fibonacci level at $0.5897 would be a significant milestone for XRP.
Hot Take: The Need for Unified Regulation in the EU
This incident not only reveals the complexities of navigating crypto investment regulations but also emphasizes the necessity for a unified regulatory framework within the European Union. Inconsistent directives across member states create confusion and hinder innovation in investment portfolios. A harmonized approach is crucial to create a transparent and cohesive market for crypto investments in the EU.
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