Chinese insurer China Pacific Insurance Company (CPIC) has teamed up with Waterdrip Capital to launch two digital asset-dedicated funds targeting institutional investors and high-net-worth individuals in Hong Kong.
The first fund – Pacific Waterdrip Digital Asset Fund I – will be a venture capital investment fund targeting seed and private placement rounds of early-stage blockchain projects in the fields of infrastructure, decentralized applications, Web3 SaaS service tools, metaverse, and NFT applications, among others, according to an announcement published by Waterdrip Capital on April 6.
The second fund – Pacific Waterdrip Digital Asset Fund II – will be a proof-of-stake (POS) token yield enhancement fund that invests primarily in digital assets with POS as the consensus mechanism. The investment will be made through marketing timing, decentralised on-chain staking, and other methods, per the announcement.
“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,” Waterdrip Capital said in the announcement.
Founded in 2017 by Yushan Zheng, a former chip design engineer in Huawei’s HiSilicon, and Jerry Liu, one of the earliest evangelists in the Chinese blockchain industry, Waterdrip Capital is an Asian crypto VC firm focused on the blockchain industry.
The new funds aim to ride on Hong Kong’s crypto bandwagon, as the city vies to become a global virtual asset centre. The city’s proactive measures have attracted a bevy of businesses in the crypto and blockchain space to establish a presence in the city.
As of February, over 80 virtual asset-related Mainland and foreign firms have expressed interest in establishing a presence in the city, said Secretary for Financial Services and the Treasury Christopher Hui at the Aspen Digital Web 3 Investment Summit on March 20.