Bitcoin price breaks $100,000 again, Alipay promotes encryption funds causing heated discussions

Bitcoin has finally broken through the $100,000 mark again after a series of fluctuations. Just as the year-end market focuses on the Federal Reserve's movements, an advertisement from Alipay has unexpectedly brought pleasant surprises to the industry.

Recently, some users discovered that the payment page for the ola fund featured promotional content for cryptocurrency funds, with the slogan "Global investment, cryptocurrency skyrocketing, starting from 10 yuan, get on board immediately." After verification, the fund is Huabao Overseas Technology C (QDII-FOF-LOF), with a daily purchase limit of 1000 yuan per person.

Although not all users can see this advertisement, products under Huabao can still be purchased normally on certain fund distribution platforms. In addition to Huabao Overseas Technology C, other encryption-related funds such as Guofu Global Technology Internet Mixed (QDII) are also recommended.

This move quickly sparked heated discussions in the industry, with many speculating whether it signifies a shift in the mainland's attitude toward encryption.

In-depth analysis reveals that the funds of Huabao and Guofu both belong to the QDII (Qualified Domestic Institutional Investor) category. The QDII system allows domestic institutions to invest in overseas capital markets under control, providing domestic investors with indirect access to overseas markets.

Huabao Overseas Technology C is an open-end fund that can be traded on the exchange, primarily investing in overseas technology-themed related funds. According to its Q3 2024 report, the fund invests 87.5% in funds, most of which are ARK ETFs. In this way, Huabao has achieved indirect investment in encryption assets, including approximately 4.93% of Coinbase stocks and 2.98% of Ark 21Shares Bitcoin ETF.

The National Wealth Fund mainly focuses on stock investments and does not significantly reflect blockchain companies in its holdings. Overall, the actual investment proportion of encryption assets in these funds is not high, and they are more focused on marketing using the popularity of encryption assets.

Nevertheless, this practice provides domestic investors with a compliant channel to indirectly hold encryption currencies. The advertising promotion by Alipay has also allowed more investors to access these types of assets, which has positive implications for the development of the industry.

However, from the current regulatory landscape, it is still too early to discuss fully opening up cryptocurrency. Since the beginning of this year, our country's regulatory policies on virtual currency have not loosened, and many regions are reiterating notifications to prevent the risks of virtual currency trading speculation. The mainstream media's attitude towards encryption assets is also still relatively cautious.

Considering the potential impact of cryptocurrencies on sovereign currencies and their decentralized characteristics, a complete relaxation of virtual currencies seems difficult to achieve under the current strict foreign exchange control context. However, with the changing global attitude towards Bitcoin, it remains to be seen whether future policies will be adjusted.

For ordinary investors, this indirect investment approach at least offers a legitimate option to participate in the encryption market. With Hong Kong gradually opening up virtual asset businesses, it is foreseeable that more flexible investment channels suitable for Chinese investors will emerge in the future.