Alipay, a prominent Chinese payment platform boasting over a billion users, has sparked controversy by promoting Bitcoin exchange-traded funds (ETFs). Many mainland Chinese users saw the advertising, which offered them the opportunity to invest in a fund with indirect exposure to prominent US crypto firms such as Coinbase and the ARK 21Shares Bitcoin ETF. They set the minimum investment to join at 10 yuan ($1.40), and set a daily purchase limit of 1,000 yuan ($137).
These advertisements, which appeared on Alipay’s homepage, attracted the eye of local observers, raising debate over the future of bitcoin on the platform. Many thought that this could be a precursor to the ability to buy Bitcoin directly through Alipay, which has long been a source of speculation among cryptocurrency fans.
The advertisements directed viewers to the Huabao Overseas Technology C fund, which is a Qualified Domestic Institutional Investor (QDII). This fund indirectly invests in Coinbase stock and the ARK 21Shares Bitcoin ETF through other investment vehicles, including Cathie Wood’s ARK Innovation Fund. Despite China’s tight cryptocurrency trading restrictions, which resulted in a ban on Bitcoin transactions in 2019, the adverts made it through, prompting a debate over the country’s crypto future.
Yifan He, the CEO of Red Date Technology, noted that Alipay’s parent firm, Ant Financial, provides some US ETF trading services. However, he believes that third-party exploits of the system result in these advertisements, and he anticipates their removal shortly.
The debut of Bitcoin-related adverts on Alipay coincides with a surge in Bitcoin’s global popularity, particularly as ETFs connected to the cryptocurrency gain traction on Wall Street. With Bitcoin prices reaching new heights, these ads reflect growing interest in crypto investments among Chinese users, despite the countryâ€TMs ongoing crackdown on the sector.
