Last week, a sea of red swept through the crypto markets following reports that US President Joe Biden is mulling a plan to nearly double what wealthy people pay on their investment gains.

Bitcoin slumped below $48k at one point. Ethereum also fell victim to the market-wide sell-off, dropping by more than 20% from its new all-time high of $2,645 earlier in the week. However, some analysts have commented that the sudden market pullback wasn't necessarily due to the Biden news, and simply a healthy correction given that Bitcoin has been running hot recently.

This morning, the total crypto market cap is closing in on $2 trillion again but Bitcoin dominance has taken a nosedive. Last week, it fell briefly below 50% for the first time since January 2018. For some perspective, at the start of 2021, Bitcoin dominance stood at 70.68%. Ethereum, Binance Coin both and a number of other altcoins have all been eating away at BTC’s dominance levels, a signal many market commentators have interpreted as a green light for the next altcoin season.

Finally, make sure to join us this Wednesday and Thursday at the inaugural OMFIF DMI symposium, which Copper is proud to be supporting. More details at the bottom of this e-mail, but if you wish to attend, we still have a number of passes to hand out. If you’d like one, please send a request to marketing@copper.co with your name, company, position, and email. Quantities are limited - first come, first served!

Top stories of the week

Two Turkish crypto exchanges investigated for fraud

Following the alleged exit scam pulled by cryptocurrency exchange Thodex, another crypto trading platform is being investigated by Turkish authorities. Vebitcoin, a Turkey-based crypto trading platform, became the second crypto exchange to face troubles within about a week after the country’s central bank banned crypto use for payments. Read more

Bank of England and HM Treasury launch taskforce for UK CBDC

Last Monday, the Bank of England and HM Treasury announced the launch of a taskforce to explore a potential UK central bank digital currency (CBDC). According to the announcement, the UK government have not yet decided whether to launch a CBDC so will use the taskforce to explore the practicalities of doing so. Thus far, the Bank of England’s work on a CBDC has been limited to a discussion paper published in March 2020, so this is the first sign of any practical exploration taking place. Read more

Venmo is the latest payment app to embrace cryptocurrency

Venmo users will be able to buy, hold and sell various virtual currencies, parent company PayPal announced Tuesday, becoming the latest payment app to embrace cryptocurrencies amid a broader institutional acceptance that could push the once-esoteric offerings into mainstream use. Like PayPal, Venmo will support four popular digital assets: Bitcoin, Ethereum, Litecoin and Bitcoin Cash. Read more

In case you missed it..

⚡️ Three Ether ETFs begin trading on Toronto Stock Exchange.

⚡️ Ark Investment Management ups holdings in Coinbase.

⚡️ Grayscale added nearly $1bn in crypto in 24 hours.

⚡️ Former top banking regulator Brian Brooks to become CEO of Binance US.

⚡️ Binance’s Tesla, Coinbase Stock tokens under scrutiny from the FCA.

⚡️ UK bank NatWest won’t serve businesses dealing in crypto.

⚡️ Ether price hits new highs above $2,560.

⚡️ Paxos receives ‘preliminary conditional approval for US bank charter.

⚡️ NYSE files to list shares of Valkyrie’s Bitcoin ETF.

⚡️ BitMEX lays out ambitions to expand its business.

⚡️ Seoul gov seizes $22m worth of crypto from tax evaders.

⚡️ GBTC sinks to record low.

⚡️ Coinbase Pro announces support for Tether's Ethereum-based USDT stablecoin.

⚡️ Silvergate posts strong Q1 and says it's looking to stablecoins as a growth avenue.

⚡️ India may give crypto holders an “exit window" in case of Bitcoin ban.

⚡️ Charles Schwab to offer crypto services if the US implements clearer regulations.

⚡️ Morgan Stanley Bitcoin fund draws $29.4m in 2 weeks, filings show.

⚡️ Norway to start digital currency tests after 4 years of research.

⚡️ Aave set to launch liquidity mining program.

⚡️ April's crypto exchange volumes have hit a new all-time high.

⚡️ Wyoming 'DAO law' to go into effect in July after receiving final approval.

From Copper

New article: Now that Bitcoin has started to win institutional acceptance, are sovereign wealth funds next?

Several major sovereign wealth funds have reportedly joined the bandwagon of institutional investors globally in investing in Bitcoin. Are we on the cusp of accelerated crypto growth? Our latest article is available to read here.

Upcoming event: The inaugural DMI symposium (Wednesday 28 - Thursday 29 April)

This week, the Digital Monetary Institute (DMI) of which we're a member, is bringing together policy-makers, technology experts and investors to push the boundaries of the discussion on practical and theoretical aspects of digital currencies and the future of capital markets on 28-29 April 2021. You can find out more and register by clicking here. As mentioned at the start of the e-mail, you can also reach out to us directly for passes.