Chinese State Firm Launches Two Crypto Funds
The businesses have established two venture capital funds called Pacific Waterdrip Digital Asset Fund I and Pacific Waterdrip Digital Asset Fund II
Two investment funds have been established in the special administrative region by a company with headquarters in Hong Kong that is a member of the China Pacific Insurance Company (CPIC) group and will focus on the sector centered on blockchain technologies and digital assets.
CPIC is the third-largest state-owned insurance company in China, according to a post by Chinese crypto journalist and blogger Colin Wu, also known by the Twitter handle “Wu Blockchain,” which was based on a report from the website 36kr.com.
A global investment company called Waterdrip supports, among other things, blockchain-related initiatives and cryptocurrency startups like Polkadot. According to its website, it was established in 2017 by “the most visionary Chinese blockchain pioneers.”
The businesses have established two venture capital funds called Pacific Waterdrip Digital Asset Fund I and Pacific Waterdrip Digital Asset Fund II, also known as the “POS Token Income Enhancement Fund,” to make investments in the industry.
While the second will primarily hold digital assets based on the proof-of-stake (POS) consensus mechanism, the first will invest in the early stages of new projects focused on the development of blockchain infrastructure, decentralized finance applications, Web3, metaverse, and non-fungible token (NFT) apps.
The initiative’s primary goal is to provide investors with more innovative and diversified investment options. High-net-worth individuals as well as institutional investors like companies and family offices will be among the funds’ target market.
Although cryptocurrency-related activities have been severely restricted by the People’s Republic of China’s central government, there have been hints that Beijing is in favor of Hong Kong’s goal of becoming a major hub for digital assets. China’s state-owned banks have been welcoming crypto companies to the country, according to a recent Bloomberg report.