China Pacific Insurance Company (CPIC), a state-owned insurance company, and Waterdrip Capital, an international investment institution, have together launched two cryptocurrency investment funds in Hong Kong. The first fund, named Pacific Waterdrip Digital Asset Fund I, will focus on investments in projects related to blockchain technologies, decentralized finance applications, Web3, metaverse, and non-fungible tokens (NFTs).

The second fund, Pacific Waterdrip Digital Asset Fund II, or POS Token Income Enhancement Fund,will mainly hold digital assets based on the proof-of-stake (POS) consensus mechanism.

The funds will be targeted towards institutional investors and high-net-worth individuals. The main aim of setting up these funds is to provide investors with more diversified and innovative investment options.

This comes despite China's negative regulatory stance towards cryptocurrencies, with the country officially outlawing Initial Coin Offerings (ICOs) and domestic cryptocurrency exchanges in September 2017. The Chinese government has also urged its citizens not to invest in cryptocurrencies.

However, Bloomberg recently reported that China's state-owned banks have been opening their doors to crypto companies entering the Hong Kong region.

The launch of these two cryptocurrency funds by CPIC and Waterdrip Capital presents yet another example of the region’s ambitions to become a global hub for digital assets. It will certainly be interesting to see what other steps the organizations take to cement HK’s status as a major cryptocurrency center going forward.



Other News from Today