December 16, 2024
By Our Correspondent
A Chinese fund manager has highlighted its cryptocurrency investments in an attempt to attract investors during a significant surge in bitcoin prices, despite the Chinese government’s ongoing negative stance towards digital currencies.
An advertisement for the fund, which stated “Cryptocurrencies soaring, start investing with 10 yuan,” was observed on Alipay, the mobile wallet application of Ant Group, a leading fintech company in China, as reported by the crypto-focused outlet Wu Blockchain on Thursday.
The fund, classified as a Qualified Domestic Institutional Investor (QDII) fund and managed by Hwabao WP Fund Management based in Shanghai, proudly announced in the advertisement its substantial investments in Coinbase, a cryptocurrency exchange based in the United States, as well as the ARK 21Shares Bitcoin ETF provided by the American asset management firm Ark Invest. QDII products, which enable qualified institutional investors to invest in foreign securities, represent one of the limited options available for individual investors in mainland China to access international equities.
The primary assets of the QDII fund Hwabao, which is promoted on Alipay, include Ark Invest’s ARK Innovation ETF and ARK Fintech Innovation ETF, both of which list Coinbase among their significant holdings.
According to a representative from Ant Fortune, Ant Group’s wealth management platform, “The fund is issued by Hwabao WP Fund and marketed through its Ant Fortune account.”
The QDII fund is accessible for purchase on various platforms, the Ant representative further noted. Hwabao WP Fund Management has not yet provided a response to a request for comment. Ant is the financial technology subsidiary of Alibaba Group Holding, which also owns the South China Morning Post.
This marketing initiative underscores the ongoing interest of mainland Chinese investors in cryptocurrencies, despite the government’s stringent measures against the sector, particularly as bitcoin prices reach unprecedented levels. Bitcoin experienced a notable increase leading up to the US presidential election, following promises from Republican nominee and now president-elect Donald Trump to enhance the industry. The largest cryptocurrency surpassed US$100,000 for the first time last week, coinciding with Trump’s appointment of crypto advocate Paul Atkins to lead the US Securities and Exchange Commission.
While numerous experts in China have recently expressed concerns regarding the nation’s traditionally conservative approach to cryptocurrencies, there has been no indication from Beijing that it intends to ease its oversight of the sector. Over the years, local courts have affirmed that individual ownership of cryptocurrencies is recognized as property; however, the Chinese government continues to view digital assets as a potential risk to financial stability. The country initially prohibited initial coin offerings and mandated the closure of crypto exchanges in 2017, intensifying its crackdown in 2021 by banning bitcoin mining and declaring crypto-related enterprises illegal.
