In the context of the Hong Kong government’s strong promotion of the virtual asset industry, CPIC Investment Management (H.K.) Company Limited and Waterdrip Capital have jointly launched two digital asset funds, providing investors with digital asset fund products with a strong focus on risk control under a robust legal and compliance set-up.

In October last year, Hong Kong released the “Policy Statement on Development of Virtual Assets in Hong Kong”, which demonstrated Hong Kong’s determination to become a global virtual asset center and clarified its focus on virtual asset development. The statement pointed out that virtual assets are indispensable in the global market, and as an international financial center, Hong Kong will adopt an open and inclusive attitude towards global innovators engaged in the virtual asset business. At the same time, Hong Kong will actively promote the integration of the virtual asset industry with traditional finance. This policy declaration sends a strong signal to global investors and entrepreneurs that Hong Kong will become a global virtual asset center.

Under the policy background of the Hong Kong government’s strong promotion of the virtual asset industry, CPIC Investment Management (H.K.) Company Limited and Waterdrip Capital have jointly launched two digital asset funds: Pacific Waterdrip Digital Asset Fund I(a venture capital fund) and Pacific Waterdrip Digital Asset Fund II (aPOS token yield enhancement fund), aiming to provide investors with more diversified and innovative investment choices. The target investors of the two funds include institutional investors such as corporates and family offices as well as high-net-worth individual investors.

Pacific Waterdrip Digital Asset Fund I mainly participates in seed and private placement rounds of early-stage blockchain projects, covering fields including but not limited to blockchain infrastructure, decentralized applications, Web3 SaaS service tools, metaverse, and NFT applications. The fund team will continue to cultivate the blockchain venture capital market, striving to discover more innovative and value-generating start-ups and teams.

Pacific Waterdrip Digital Asset Fund II’s investment positions will primarily be in digital assets with POS as the consensus mechanism. Based on the fund team’s extensive experience in the industry and assessments of the macroeconomic environment, it will enhance returns through market timing, decentralized on-chain staking, and other methods. At the same time, it will use financial derivatives and other instruments to control risk and lock in profits during extreme one-sided market situations.

CPIC Investment Management (H.K.) Company Limited holds Hong Kong SFC licenses for Type 1, dealing in securities, Type 4, advising on securities, and for Type 9, asset management. Its ultimate parent company is China Pacific Insurance Group Co., Ltd. With global insights, CPIC Investment Management Hong Kong leverages its experience of large-scale asset allocation and provides clients with a range of asset management products spanning from traditional and emerging assets in fixed income, equity to alternative investments.

Waterdrip Capital, founded in 2017 by several senior professionals who were among the earliest participants in China’s blockchain industry, is an international investment institution focused on the blockchain vertical field. Waterdrip Capital aims to become an organic bridge between traditional financial markets and the blockchain ecosystem, actively investing in high-quality blockchain projects, deeply participating in the construction of the global digital economy ecosystem, and comprehensively building digital financial infrastructure for the future. Under the leadership of its core team with strong technical background and rich investment experience, Waterdrip Capital has invested in more than 100 domestic and foreign blockchain projects in the past five years, continuously generating substantial returns for investors.

The collaboration on the digital asset funds aims to combine the expertise of the two institutions, providing investors with digital asset fund products with a strong focus on risk control under a robust legal and compliance set-up, ensuring the safety of their funds while obtaining returns from the primary and secondary markets of digital assets.

As more and more virtual asset-related policies are being implemented by the Hong Kong government, the launch of the funds also represents an important strategic milestone of CPIC Investment Management (Hong Kong) and Waterdrip Capital in this field. With the increasing focus on compliance in the virtual asset industry, both institutions aim to navigate the trend and seize new opportunities in the virtual asset market.