London-headquartered asset manager Jupiter Asset Management canceled its investment in an XRP -3.70% exchange-traded product due to compliance issues, the Financial Times reported Friday.

Jupiter’s Ireland-based Gold & Silver fund purchased $2.57 million in 21Shares’ Ripple XRP ETP in the first half of 2023, according to the news report. The investment was then detected by the company’s routine “oversight process,” after which the compliance team ordered the fund to withdraw its holdings. This resulted in a loss of $834, which Jupiter reportedly stated was fully recovered.

The company reportedly canceled the ETP investment as Irish authorities do not allow crypto exposure in funds governed under UCITS, which stands for Undertakings for the Collective Investment in Transferable Securities. UCITS is a regulatory framework that established rules for selling mutual funds across European Union member states. 

UCITS funds can hold up to 10% of their portfolio in illiquid assets. However, European regulators have differing rules on whether those funds can invest in products that contain cryptocurrencies. Jupiter’s Gold & Silver fund had previously held crypto before the Irish government had announced its stance against investments, the FT reported. 

Ireland, France and UK regulators have said that UCITS funds cannot invest in crypto assets. Meanwhile, Germany allows UCITS funds to invest in crypto ETPs, under circumstances that the product reflects the crypto asset’s value on a one-to-one basis.

21Shares explained on its official Q&A page that “there is no conclusive answer” to whether its ETPs are eligible for UCITS funds, while it said the products “could be considered eligible” according to its assessment.

Jupiter Asset Management did not immediately respond to The Block’s request for further comment.