The Chinese government seems to be more bullish on the cryptocurrency industry than one might think, as a major state-owned company is reportedly launching new cryptocurrency funds.
CPIC Investment Management, a subsidiary of China Pacific Insurance Company (CPIC), is launching two crypto funds in partnership with investment firm Waterdrip Capital, local tech-focused agency 36Kr reported April 3
Owned by China’s central government, the Shanghai government and China Securities Finance, CPI is the second largest property insurance company after People’s Insurance Company of China in mainland China.
The new crypto funds reportedly include a venture capital fund dubbed the Pacific Waterdrip Digital Asset Fund I, which will focus on investments in early-stage blockchain projects. The second fund, called the Pacific Waterdrip Digital Asset Fund II, will manage proof-of-stake, or PoS, digital assets.
According to the report, the new crypto funds will target institutional investors as well as wealthy private investors.
Waterdrip is a global investment institution that supports blockchain-related projects and crypto startups. Founded in 2017, Waterdrip is acquaintance for supporting the Chinese crypto mining industry and invest in projects like the Polkadot-based Web3 decentralized network, Peaq.
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The firm took to Twitter to confirm the news on Monday, stating that the launch of the two joint crypto funds is related to the implementation of incentive policies related to virtual assets by the Hong Kong government.
With the implementation of incentive policies related to virtual assets by the Hong Kong government, CPIC Investment Management (HK) Company Limited and Waterdrip Capital jointly launched a digital asset fund.https://t.co/OeyulJNbo6
— Water Drip Fund (@waterdripfund) April 3, 2023
CPIC did not immediately respond to Cointelegraph’s request for comment. The article will be updated pending new information.
The news comes amid a growing commitment by the Hong Kong government to the development of local cryptocurrency infrastructure, which distinguishes its approach to cryptocurrency regulation from China’s cryptocurrency ban enforced in 2021. In late March, Online reports suggested that some cryptocurrency companies in Hong Kong have been attracting increasing interest from Chinese state-owned banks.
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