Bitcoin breaks 100,000 USD, Alipay promotes encryption fund causing industry discussions

Recently, Bitcoin has once again broken through the $100,000 mark after experiencing some fluctuations. As the market focuses on the Federal Reserve's movements, an action by Alipay has caused a stir in the industry.

According to reports, some users in the mainland have seen promotional advertisements for cryptocurrency funds on the Alipay fund page, stating "Global investment, cryptocurrency soaring, starting from 10 yuan, get on board immediately." After verification, the fund is Huabao Overseas Technology C (QDII-FOF-LOF), with a purchase limit of 1000 yuan per person per day.

This news quickly sparked heated discussions in the industry, with some speculating that it may signal a relaxation of the mainland's policies on encryption currency.

In-depth analysis reveals that Huabao Overseas Technology C and Guofu Global Technology Internet Mixed both belong to QDII funds, which are Qualified Domestic Institutional Investor funds. The QDII system allows domestic institutions to invest in overseas capital markets under certain conditions, providing domestic investors with an indirect channel to participate in overseas asset investments.

The investment strategy of HuaBao Overseas Technology C mainly focuses on overseas technology-themed related funds, including ETFs. From an asset allocation perspective, the fund invests 87.5% in funds, 8.9% in bank deposits and clearing reserves, and 3.6% in other assets.

Further examining the investment details, it was found that 5 out of the top ten holdings are from ARK ETF, accounting for 73.11%. The holdings of ARK ETF include Coinbase stock and the Bitcoin spot ETF Ark 21Shares Bitcoin ETF. Through this multi-layered investment structure, Huabao achieved indirect investment in encryption assets, accounting for approximately 7.92% of the total investment.

However, the fund size of Huabao Overseas Technology C is only 406 million yuan, and the proportion of actual investment in encryption assets is relatively small. In comparison, the proportion of investment in encryption assets by Guofu Fund is even lower, with almost no blockchain-related companies visible in its disclosed holdings. This indicates that encryption assets are more often used as a promotional gimmick for the fund.

From a performance perspective, Hua Bao Overseas Technology C has achieved a net value growth of 25.02% this year, outperforming the CSI 300 Index. However, compared to directly holding Bitcoin, its performance still has a significant gap, and it also needs to bear additional management fees and custody fees.

Nevertheless, this investment method provides mainland investors with a compliant channel to indirectly hold cryptocurrency. The promotional activities of Alipay have also allowed more investors to access such assets, which is positively significant for the development of the industry.

However, from a regulatory perspective, it is still too early to discuss a complete liberalization of cryptocurrencies. Since the beginning of this year, there have been no substantial changes in our country's regulatory policies regarding virtual currencies, and many regions are reiterating the need to prevent the risks associated with virtual currency trading and speculation. Mainstream media remains cautious about encrypted assets, emphasizing their potential risks.

Considering the potential impact of cryptocurrency on sovereign currency and our country's strict foreign exchange control policies, the possibility of fully opening up virtual currency in the short term is relatively small. However, with the development of the global cryptocurrency market, especially if the United States designates Bitcoin as a strategic reserve, future policies may be adjusted.

For ordinary investors, indirect investment provides a relatively safe way to participate. As Hong Kong gradually opens up the cryptocurrency market, more flexible investment channels suitable for Chinese investors may emerge in the future.