China-backed Firm Launches Two Crypto Investment Funds

The government of China has continued to maintain its bullish stance on the crypto market despite the uncertainty in the industry and the broader financial market.

Just recently, the State-owned China Pacific Insurance (CPI) firm launched two crypto asset funds to provide investors with legal digital assets. The funds were launched in collaboration with Waterdrip Capital, an international investment firm that supports blockchain-focused projects and crypto startups

The two digital asset funds are Pacific Waterdrip Digital Asset Fund I and Pacific Waterdrip Digital Asset Fund II, of which the former happens to be a risky investment fund while the latter is a POS Token Income Enhancement Fund. Interestingly both funds will allow investors to have access to lots of inventive and innovative investment options. 

Both funds designed for institutional and high-grade private investors will be managed by a subsidiary of CPIC Investment Management in Hong Kong. CPI is the largest insurance property company in mainland China just after the People’s Insurance Company of China. Obviously, the launch of the crypto investment funds by the state-owned firm signals Hong Kong’s drive to become a regional hub for digital assets.

Hong Kong Drive to Become a Different Asset Hub

As revealed by Waterdrip in a tweet confirming the news, the launch of the funds is in relation to the implementation of virtual asset-linked policies by the Hong Kong government.

As previously reported, Chinese banks domiciled in Hong Kong have begun offering banking services to crypto businesses. There has been a steady inflow of crypto businesses from mainland China due to the ban in the capital city of Beijing.

According to a recent report from Kaiko, a leading source for cryptocurrency market data Hong Kong might finally become the “center of gravity.” The report shows that friendlier crypto regulations in Hong Kong will make the nation unintentionally benefit from the recent crackdown on cryptocurrency in the United States.

Although the Chinese government has been unfriendly with crypto with numerous crackdowns in the industry and at one time arresting individuals engaging in crypto trading in recent times, the country has shown a willingness to be identified with the underlying blockchain technology. 

Recently it launched a blockchain research center dubbed the National Blockchain Technology Innovation Center where a series of explorations into technology for industry application will be carried out.