Chinese company CPIC Investment Management, is launching two crypto funds in partnership with Waterdrip Capital in Hong Kong.
The Pacific Waterdrip Digital Asset Fund 1 will focus on investments in early-stage blockchain projects, while the Pacific Waterdrip Digital Asset Fund II will manage proof-of-stake digital assets.
The funds are backed by the central government of China, the Shanghai municipal government and China Securities Finance, making CPIC the second largest property insurance company in mainland China after the People’s Insurance Company of China.
Waterdrip Capital is a global investment institution that supports blockchain-related projects and crypto startups. It is known for supporting the Chinese crypto mining industry and investing in projects such as Polkadot-based decentralized Web3 network Peaq.
The firm took to Twitter to confirm the news, stating that the launch of the two joint crypto funds relates to the implementation of incentive policies related to virtual assets by the Hong Kong government. The funds are reportedly part of Hong Kong’s efforts to develop local cryptocurrency infrastructure.
The move is surprising given China’s crackdown on cryptocurrency in recent years, including a ban on initial coin offerings (ICOs) and the forced closure of cryptocurrency exchanges. However, it appears that the Chinese government may be more bullish on the industry than previously thought.
In contrast, Hong Kong has been increasingly committed to developing local cryptocurrency infrastructure, distinguishing its crypto regulation approach from China’s crypto ban.
In late March, online reports suggested that some crypto firms in Hong Kong have been attracting interest from Chinese state-owned banks.
The launch of these crypto funds by CPIC Investment Management and Waterdrip Capital shows that China is not entirely opposed to cryptocurrency and blockchain investment.
The move also highlights the growing interest in cryptocurrencies and their underlying technology among institutional and high net worth investors.
As the global cryptocurrency market continues to grow and mature, it is likely that more institutional players will enter the space. This could lead to increased adoption and legitimacy for cryptocurrencies, as well as greater regulatory clarity and oversight.
China Launches Hongkong Crypto Funds
In conclusion, CPIC Investment Management’s launch of two crypto funds in partnership with Waterdrip Capital indicates that the Chinese government may be more positive about cryptocurrency and blockchain investment than previously thought.
The funds, which are backed by the Chinese central government, will target institutional and wealthy private investors and focus on early-stage blockchain projects and proof-of-stake digital assets.
The move highlights the growing interest in cryptocurrencies among institutional investors and the potential for increased adoption and regulatory clarity in the industry.