Alipay, China’s largest payment platform with over a billion users, reportedly displayed cryptocurrency-related ads on its app for mainland Chinese users. These ads promoted investment opportunities linked to Bitcoin exchange-traded funds (ETFs), a surprising move given China’s strict anti-crypto stance.
Ads Promoting Indirect Bitcoin Exposure
On Dec. 12, local news agency Sina Finance reported that Alipay users in mainland China encountered advertisements promoting indirect exposure to Bitcoin. The ads suggested global crypto investments with a minimum investment of just 10 yuan ($1.40). The promoted fund, Huabao Overseas Technology C (QDII-FOF-LOF), reportedly invests indirectly in Coinbase stock and the ARK 21Shares Bitcoin ETF.
Users could invest up to 1,000 yuan ($137) daily, as highlighted by local market observer Colin Wu. Wu explained that the fund channels investments into U.S.-based crypto ETFs through Cathie Wood’s Ark Invest funds, offering Chinese investors indirect exposure to Bitcoin despite the country’s anti-crypto policies.
Growing Curiosity Amid Crypto Restrictions
While some mainland Chinese users predicted that Alipay might eventually allow direct Bitcoin purchases, others expressed skepticism. According to Yifan He, CEO of blockchain firm Red Date Technology, the ads are likely from third-party entities exploiting loopholes rather than a direct initiative by Ant Group, Alipay’s parent company. He downplayed the development, suggesting regulators would act if the ads posed a significant risk.
China’s Anti-Crypto History
Alipay banned all Bitcoin-related transactions in 2019 to align with China’s crypto crackdown. The government banned crypto exchanges in 2017 and imposed a broader crackdown in 2021. Despite this, Chinese authorities recognize crypto assets as legal properties, allowing for limited indirect investment opportunities.
While Hong Kong has embraced crypto ETFs, mainland Chinese investors have generally been excluded. Speculation about China easing its crypto restrictions has surfaced periodically, with figures like Galaxy Digital CEO Mike Novogratz predicting a potential unban. However, these rumors remain unsubstantiated, and China’s strict policies persist.
