Urgent Crypto News: Coinbase Launches Bitcoin Yield Fund, Bitget Fights Manipulation, Trump Eyes Tax Cuts

Welcome to your daily digest of the most impactful **Crypto News**. Staying informed is crucial in the fast-paced world of digital assets, where market movements, regulatory shifts, and platform developments can happen in an instant. Today, we’re diving into a major move by a leading exchange, a battle against market integrity threats, and potential policy changes from the highest levels of government.

Coinbase Unveils New **Bitcoin Yield Fund** for Institutions

In a significant development for institutional investors, Coinbase is set to launch its Bitcoin Yield Fund on May 1. This fund is specifically designed to offer non-US institutional clients a way to generate passive income from their Bitcoin holdings. Here are the key details:

• **Target Audience:** Institutional investors located outside the United States.
• **Return Target:** Aims for an annual net return between 4% and 8%.
• **Strategy:** Employs a cash-and-carry approach, leveraging the difference between spot and derivatives prices.
• **Addressing a Gap:** Seeks to provide a yield option for Bitcoin, which unlike assets like Ether or Solana, doesn’t offer native staking rewards.
• **Risk Mitigation:** Coinbase states the fund is structured to lower the investment and operational risks often associated with other Bitcoin yield products, aiming for better alignment with institutional risk appetites.

This move highlights the growing demand from traditional finance players looking for sophisticated ways to engage with digital assets and generate returns, further bridging the gap between traditional finance and the crypto market. The fund’s backing by entities like Aspen Digital underscores the increasing interest from regulated financial sectors.

Bitget Takes Legal Action Over Alleged **Market Manipulation**

Crypto exchange Bitget is cracking down on activities it deems manipulative. The platform’s lawyers have reportedly sent legal letters to eight account holders accused of manipulating the perpetual futures contract price for the VOXEL token. The exchange alleges these accounts collectively profited around $20 million from the activity.

Bitget’s head of Chinese operations confirmed the action, stating that recovered funds would be redistributed to other affected users. This follows Bitget’s earlier action on April 20, when it identified ‘abnormal trading activity’ on the VOXEL/USDT perpetual futures contract, paused accounts, and rolled back trades to mitigate the impact. The high trading volume on the pair, significantly exceeding that on other exchanges like Binance, initially raised concerns about potential irregularities.

This situation underscores the ongoing challenges exchanges face in maintaining market integrity and the steps they are willing to take to address suspected manipulation and protect their user base.

Trump Discusses Potential Shifts in **US Tax Policy**

Beyond the crypto markets themselves, potential changes in broader economic policy can also have an impact. Former US President Donald Trump recently reiterated his idea of significantly reducing or potentially eliminating federal income taxes, proposing to replace lost revenue with tariffs on imported goods.

In a social media post on April 27, Trump stated the tax reduction would primarily benefit those earning less than $200,000 annually. While not directly about crypto, such a fundamental shift in the US tax structure could have widespread economic effects that indirectly influence investment behavior and market dynamics, including those in the digital asset space. The proposal suggests a move towards relying more on trade policy for government revenue, a concept that has been debated for its potential economic consequences.

Summary

Today’s **Crypto News** cycle featured significant developments across different facets of the industry. Coinbase is paving the way for greater **Coinbase Institutional** engagement with a dedicated **Bitcoin Yield Fund**, offering new avenues for passive income on BTC holdings for qualified investors. Meanwhile, Bitget is actively addressing concerns around **Market Manipulation**, taking legal steps to protect its platform and users from illicit trading activities. On a broader economic level, discussions around potential **US Tax Policy** changes initiated by Donald Trump highlight how macroeconomic factors and government policy could indirectly shape the financial landscape that crypto operates within. Staying informed on these varied fronts is key for anyone navigating the digital asset space.