Today in the cryptocurrency world, Coinbase announced the upcoming launch of its Bitcoin Yield Fund, aimed at institutional investors seeking passive income. Meanwhile, Bitget has taken legal action against users accused of manipulating token contracts, and U.S. President Donald Trump has proposed significant changes to federal income taxes.
Key Takeaways
- Coinbase to launch a Bitcoin Yield Fund on May 1, targeting 4%-8% returns for institutional investors.
- Bitget sends legal letters to users accused of manipulating the VOXEL token, potentially recovering $20 million.
- President Trump proposes substantial reductions or elimination of federal income taxes for low earners.
Coinbase Launches Bitcoin Yield Fund
Coinbase, the third-largest cryptocurrency exchange globally, is set to launch the Coinbase Bitcoin Yield Fund on May 1. This fund is designed to provide institutional investors outside the U.S. with exposure to Bitcoin (BTC) while targeting an annual net return of 4% to 8% on their holdings.
In a recent blog post, Coinbase stated, "To address the growing institutional demand for bitcoin yield, Coinbase Asset Management is excited to introduce the Coinbase Bitcoin Yield Fund (CBYF)." The fund is backed by several investors, including Aspen Digital, a regulated digital asset manager based in Abu Dhabi.
The yield will be generated through a cash-and-carry strategy, capitalizing on the difference between spot Bitcoin prices and derivatives. This initiative aims to fill a gap in the market, as Bitcoin holders currently cannot generate passive income through staking, unlike other cryptocurrencies such as Ether (ETH) and Solana (SOL).
Bitget Takes Legal Action Against Manipulators
In a significant move, Bitget has sent legal letters to eight account holders on its platform, accusing them of manipulating the price of perpetual futures contracts linked to the VOXEL token. The exchange claims these users pocketed a total of $20 million through their actions.
Bitget’s head of Chinese operations, Xie Jiayin, announced that the legal letters would be dispatched in quick succession, and any recovered funds would be redistributed to other users on the platform. The VOXEL token is the native utility token of Voxies, a free-to-play, 3D tactical RPG game built on the Ethereum blockchain.
The exchange had previously identified "abnormal trading activity" on its VOXEL/USDT perpetual futures contract, leading to the suspension of accounts suspected of market manipulation. Following this, Bitget rolled back irregular trades to recover gains.
Trump Proposes Tax Reforms
In a surprising announcement, U.S. President Donald Trump stated that federal income taxes would be "substantially reduced" or potentially eliminated altogether. This proposal is linked to the implementation of new trade tariffs, which Trump claims will benefit Americans earning less than $200,000 annually.
In a post on Truth Social, Trump wrote, "It will be a bonanza for America. The External Revenue Service is happening." This statement marks the first detailed outline of his tax reform plans since discussions began in October 2024.
Trump has previously suggested replacing income tax revenues with tariffs collected on imported goods, aiming for a comprehensive overhaul of the current tax system.
As the cryptocurrency landscape continues to evolve, these developments highlight the growing intersection between traditional finance and digital assets, as well as the regulatory challenges that lie ahead.
