Bitcoin has staged a spectacular rally since its lows near $40k in late September, surging more than 35% and demonstrating that it can bounce back from negative headlines.

On Wednesday, a note issued by JPMorgan analyst, Nikolaos Panigirtzoglou, to clients declared that the recent increase in price of BTC can primarily be attributed to institutional investors looking for a hedge to inflation. "The re-emergence of inflation concerns among investors has renewed interest in the usage of Bitcoin as an inflation hedge,” the analyst said, arguing there has been a shift in perception as to the merits of bitcoin in relation to gold.

Elsewhere, Bank of America published its first research report focused on digital assets on Monday, joining other mainstream financial institutions as they strengthen their involvement with the asset class. The "digital asset universe is too large to ignore," the bank's new digital assets team said in its report.

Are the winds of change are in motion? We certainly think so.

Here at Copper, as part of our effort to ensure we have a world-class support system at a time when institutional interest in digital assets is on the rise, we're delighted to announce the appointment of Lord Philip Hammond as Senior Advisor. The link to the full press release can be found near the end of this email.

Below is our weekly roundup of industry news. If you’d like to get in touch with us about any of our products or services, we look forward to hearing from you. Just send us a note.

Top stories of the week

Bitcoin soars on Soros endorsement

Soros Fund Management, the asset management company founded by billionaire investor and philanthropist George Soros, has revealed that it owns bitcoin. Dawn Fitzpatrick, CEO and chief investment officer of Soros Fund Management, confirmed in an interview that the family office owns “some coins but not a lot." He also added: “I’m not sure bitcoin is only viewed as an inflation hedge here. I think it’s crossed the chasm to mainstream.” Read more

SEC subpoenas USDC stablecoin backer Circle

Circle, the backer of the USDC stablecoin, said in a regulatory filing that it received an investigative subpoena from the SEC’s Enforcement Division in July. “We are cooperating fully with their investigation,” Circle said in the filing, which was issued as part of Circle’s plan to go public. Circle told CoinDesk late Tuesday it could not provide additional information, however the subpoena arrived one month after Circle began onboarding corporate USDC holders into its first high-interest yield product, Circle Yield. Read more

White House weighs wide-ranging push for crypto oversight

On Friday, Bloomberg reported that the Biden administration has drafted an executive order that could create a unified approach to crypto regulation. Citing anonymous sources, Bloomberg claims the order would have federal agencies study various areas of the cryptocurrency industry and create recommendations within those areas. In particular, the order pertains to areas such as financial regulation, economic innovation, and national security. The order would pressure departments that have so far overlooked cryptocurrency to deal with those matters. The White House could also appoint a ‘crypto czar’ to oversee the effort. Read more

In case you missed it

⚡️New Zealand launched its first Bitcoin-only investment fund.

⚡️Chainalysis: Crypto transactions surge 706% in Asia as institutional adoption grows.

⚡️Crypto M&A has reached an all-time high.

⚡️NFT sales surge to $10.7bn in Q3 as crypto asset frenzy hits new highs.

⚡️Andrew Yang expresses support for bitcoin after launching new party.

⚡️Mexico’s stock exchange is analysing crypto-focused products.

⚡️BitOasis crypto exchange to help Dubai Police spread fraud awareness.

⚡️Edward Snowden: Bitcoin is stronger after China’s crypto ban.

⚡️Hong Kong exploring CBDC as part of fintech strategy.

⚡️Stockbroker platform Public.com adds crypto trading feature.

⚡️Crypto poses ‘limited risk’ to UK: Bank of England.

⚡️Vitalik Buterin calls out Bitcoin maximalists for supporting El Salvador's president Nayib Bukele.

⚡️South Korean financial regulators move forward on crypto taxation and exchange oversight.

From Copper

Former Chancellor Philip Hammond joins Copper as Senior Adviser

Former Chancellor of the Exchequer, Lord Philip Hammond, has joined Copper as a Senior Adviser. Lord Hammond will focus on promoting the UK as a Global leader in digital asset technology. Copper’s latest funding round and strong growth throughout the last 18 months, evidences a growing appetite from institutional investors for digital assets. Read more

21Shares selects Copper to secure its cryptocurrency ETPs’ underlying assets

21Shares has selected Copper to provide custody services for its cryptocurrency exchange traded products' (ETP) underlying assets. 21Shares is the world's largest issuer of cryptocurrency ETPs and having posited a rapidly growing institutional demand for their product, this partnership will shrink the security risks facing institutional investors entering the digital asset class. Read more

Bitcoin markets: always in regression toward the mean?

A flash crash from $52,000, a China debt crisis that rippled through global markets, and a China cryptocurrency ban all made their mark quite visibly in a difficult month for cryptocurrencies. Fundamentally speaking, however, Copper still sees market strength moving forward (barring other unfavourable events) as supply continues to dwindle across spot and derivative markets. Read our latest Analyst Retrospective here. Read more

Glenn Barber on SALT Talks

Our Head of Sales Americas, Glenn Barber, recently went on SALT Talks to discuss  Copper’s design architecture with Anthony Scaramucci.Following China’s crypto crackdowns, Glenn lays out the opportunity available to the US in filling that void and emphasises the importance of smart, fair regulatory frameworks from the SEC. The two then discuss the future of crypto and some of the most exciting areas of growth. Catch the full interview here.

Boris Bohrer-Bilowitzki on Crypto Valley Association podcast

Our Chief Revenue Officer, Boris Bohrer-Bilowitzki, appeared on the latest episode of the Crypto Valley Association podcast to discuss the evolution of digital asset infrastructure with host, Sheraz Ahmed. Catch the full discussion here.

Watch on demand: ACT Education Series -Digital assets 2021 (part II)

The second webinar of Association of Corporate Treasurers's digital assets educational series invites our Head of Strategy, Asen Kostadinov, to dive into security and custody – an area we know that treasurers and other finance professionals are concerned with. This session covers everything from common myths about digital assets, the regulatory landscape, to timing and liquidity issues as well as the role of custodians. Watch it on demand here.