- China Pacific Insurance subsidiary CPIC Investment Management collaborates with Waterdrip Capital to develop two cryptocurrency funds.
- The move suggests a more optimistic stance on the crypto sector from the Chinese state-owned corporation.
China Pacific Insurance’s subsidiary, CPIC Investment Management, has teamed up with investment firm Waterdrip Capital to create two cryptocurrency investment funds, signaling a more bullish stance on the sector than previously thought. The funds, named Pacific Waterdrip Digital Asset Fund I and II, will focus on proof-of-stake digital assets, targeting institutional investors and wealthy individuals.
Waterdrip Capital, an international investment firm established in 2017, is known for supporting Chinese cryptocurrency mining businesses and investing in projects like Peaq, a decentralized Web3 network built on Polkadot. The partnership between CPIC Investment Management and Waterdrip Capital comes amid Hong Kong’s government adopting incentive policies for virtual assets and its commitment to establishing local cryptocurrency infrastructure.
This development occurs as China continues to take a strict stance against cryptocurrencies, with bans on initial coin offerings, cryptocurrency trading platforms, and mining operations. However, the state-owned corporation’s decision to offer cryptocurrency funds hints at a more optimistic outlook for the sector. China is also working on its digital yuan, aiming to lead the digital economy and reduce dependence on the US dollar.
While it is unclear if other Chinese corporations will follow suit and establish their own cryptocurrency funds, this move suggests a potential shift in China’s perspective on the industry.
Conclusion:
The creation of two cryptocurrency funds by CPIC Investment Management and Waterdrip Capital reflects a more positive outlook on the crypto sector from the Chinese state-owned corporation. With Hong Kong’s government focusing on cryptocurrency infrastructure, it remains to be seen whether this marks the beginning of a broader shift in China’s stance on the industry.
Suggested Reading:
- China’s State-Owned Banks Offer Support to Hong Kong’s Crypto Industry
- WeChat Now Accepts China’s Central Bank Digital Currency(CBDC) Payments
- Popular Self-Custody Wallet Metamask Makes Crypto Purchase Easier
