Crypto World
Jane Street, CoreWeave Ink $6B AI Compute Deal
CoreWeave, a publicly traded AI cloud infrastructure provider, announced a $6 billion deal with quantitative trading firm Jane Street to power its trading and research operations with CoreWeave’s AI-focused cloud compute. In a separate move, Jane Street bought $1 billion worth of CoreWeave Class A common stock at $109 per share. The news lifted CoreWeave’s stock modestly, with shares trading around $119.04 after the announcement and up about 1.5% for the session, according to Yahoo Finance.
The agreement arrives just days after CoreWeave revealed a partnership with Anthropic to run Claude AI models on its infrastructure, underscoring the company’s rapid pivot from crypto mining to high-performance AI compute.
CoreWeave’s strategic shift, which has positioned the company as a leading player in what Bernstein researchers describe as the “neocloud” — GPU-powered cloud services tailored for AI workloads — highlights how miners and crypto-focused operators are repurposing assets to tap growing demand for AI computing power in a climate of tightening crypto margins.
Key takeaways
- Jane Street’s $6 billion AI cloud agreement with CoreWeave signals robust demand for GPU-accelerated compute in quantitative trading and research.
- The $1 billion equity investment at $109 per share cements a long-term alliance and injects strategic capital into CoreWeave’s expansion.
- Market reaction was modest but positive, with CoreWeave’s shares rising about 1.5% to the low-$120s range after the news.
- The Anthropic deal, announced a week earlier, reinforces CoreWeave’s role as a preferred compute backbone for leading AI developers powering large language models like Claude.
- Analysts at Bernstein describe CoreWeave as a standout in the neocloud space, supported by a diversified revenue base and prominent AI model providers already using its platform.
Jane Street’s AI compute pact: scale, scope, and implications
At the core of the announcement is a multi-year, multi-facility arrangement in which Jane Street will leverage CoreWeave’s data-center footprint to run its trading and research workloads. The announcement notes that compute will be sourced from several CoreWeave facilities, illustrating a broad deployment rather than a single-site reliance. While terms other than the $6 billion compute commitment remain undisclosed, the scale signals Jane Street’s intent to anchor its research and execution capabilities in a GPU-optimized cloud environment tailored to AI and data-intensive tasks.
The arrangement aligns with a broader industry trend where quantitative trading desks increasingly seek cloud-native, GPU-accelerated infrastructure to run complex simulations, backtests, and AI-driven research. CoreWeave has positioned itself as a fit-for-purpose provider in this space, differentiating itself from traditional cloud players by focusing on high-performance GPU workloads that underpin modern AI and ML models.
According to CoreWeave’s own disclosure, the collaboration will leverage the company’s emerging neocloud framework, which Bernstein describes as GPU-driven cloud services built specifically to power AI workloads. This is a key element in understanding why major AI and finance players are gravitating toward CoreWeave: the underlying compute is designed for the heavy lifting demanded by model training, inference, and data-intensive research tasks.
Equity investment deepens the alliance
In conjunction with the compute deal, Jane Street also expanded its stake in CoreWeave by purchasing $1 billion of Class A common stock at $109 per share. The combination of a sizable equity investment and a long-term compute agreement not only strengthens Jane Street’s access to CoreWeave’s hardware and software stack but also signals confidence in CoreWeave’s ability to scale its AI cloud offerings across diverse customer segments.
Market observers will watch how this equity infusion influences CoreWeave’s capital structure and growth trajectory as it accelerates its data-center expansion and product development efforts. The immediate stock move—while modest—reflects investor recognition of a potentially meaningful shift in CoreWeave’s revenue mix toward AI compute contracts alongside on-demand services.
AI compute and the neocloud thesis
CoreWeave’s pivot from crypto mining to AI cloud computing began years before many peers embraced AI-centric infrastructure. Analysts from Bernstein have highlighted CoreWeave’s ahead-of-the-curve positioning in the “neocloud” segment, a term they use to describe GPUs-based cloud providers optimized for AI workloads. The firm’s assessment suggests that CoreWeave has developed a high-quality commercial base relative to competitors such as IREN and Nebius, with a diversified mix of contract-based and on-demand revenue streams.
Among the evidence cited by Bernstein is CoreWeave’s widespread adoption among leading AI model providers. The company has stated that nine of the top 10 AI model developers now leverage its platform, reflecting deep engagement across the AI ecosystem. This broad footprint helps explain the market’s receptivity to the Jane Street deal and the Anthropic partnership, collectively reinforcing CoreWeave’s central role in the AI compute market.
The Anthropic collaboration, announced just days before the Jane Street deal, positioned Claude AI, Anthropic’s flagship model, to run on CoreWeave’s infrastructure. That partnership mirrors a broader industry pattern: AI developers are seeking dependable, scalable compute backbones capable of handling the demanding workloads of large-language models as they scale commercially.
For observers, these developments highlight a meaningful shift in the capital allocation and strategic priorities of AI infrastructure players. CoreWeave’s ability to translate early-mover advantages in the neocloud niche into multi-faceted revenue streams — including long-term compute commitments and equity stakes from major customers — could help it navigate a competitive landscape that features both traditional cloud giants and specialized GPU-focused operators.
From crypto mining to AI compute: what changes, what remains uncertain
CoreWeave’s transformation reflects a broader trend in which crypto-mining infrastructure operators repurpose assets to support high-performance computing and AI workloads. The company’s narrative has shifted from crypto mining to AI compute leadership, a move that appears to be gaining traction given the scale of the deals and the caliber of customers joining its ecosystem. Earlier reporting in the industry has highlighted this transition as a strategic hedge against crypto market volatility and shrinking margins.
Industry observers have pointed to CoreWeave’s long-standing emphasis on GPU-accelerated workloads as a differentiator, positioning it to capture a growing share of enterprise AI compute demand. Bernstein’s analysis suggests that CoreWeave’s commercial machine stands out among neocloud peers, a dynamic that could sustain growth as AI adoption accelerates across finance, tech, and enterprise segments. Still, several uncertainties linger: how deeply CoreWeave’s reliance on marquee clients extends, how competition evolves among GPU-centric cloud providers, and how macro shifts in AI model licensing and deployment affect long-term demand for dedicated AI compute capacity.
For investors and builders, the key takeaway is that CoreWeave’s dual-track strategy — large-scale compute agreements with premier trading firms and strategic equity partnerships with those same customers — could yield a more resilient revenue base. The company’s continued expansion of data-center capacity, its ability to attract top AI developers, and its execution in the neocloud niche will be critical to watch as AI workloads continue to escalate in scale and sophistication.
What to watch next
Market participants will be watching how CoreWeave scales its data-center footprint to accommodate increasing demand from both financial services and AI developers. The pace of expansion, the retention of high-profile customers, and the company’s ability to maintain favorable terms across long-duration compute contracts will be important indicators of its trajectory. Additionally, any further partnerships in the AI space and potential updates on the rollout of Claude and other models on CoreWeave’s infrastructure will help clarify how the neocloud thesis plays out in practice. Investors should monitor regulatory developments around AI compute, potential shifts in cloud pricing, and how CoreWeave’s balance sheet evolves as it funds growth through both debt and equity financings.
Bitget rebuilt its core trading systems to cut order‑processing latency by up to 40%, a move it pitches as the technical backbone for its Universal Exchange strategy that blends crypto and TradFi under one account.
Summary
- Bitget rebuilt its core trading systems, cutting order‑processing latency by up to 40% across the platform.
- The upgrade targets more stable execution for large and complex orders during volatility, supporting Bitget’s Universal Exchange (UEX) strategy.
- CEO Gracy Chen says UEX aims to unify crypto and traditional assets under a single account system as tokenized markets scale toward the trillions.
Bitget has completed a major overhaul of its trading infrastructure, claiming it has cut order‑processing latency by as much as 40% in a bid to make the exchange more competitive for high‑frequency and derivatives traders as it pivots toward a “universal” trading model. The upgrade, announced on April 15, 2026, restructures Bitget’s matching engine and account‑system modules and applies to all users, including Bitget PRO clients and market‑making firms.
According to the company, the revamp improves response speeds from order submission through to execution and is specifically designed to “significantly enhance the execution stability of large orders and complex trading strategies during periods of market volatility.” That kind of resilience can be critical when liquidation cascades or macro shocks drive order books thin, a point Bitget has stressed as it promotes itself as a venue that can handle institutional‑scale flows in both crypto and tokenized TradFi products.
The latency upgrade slots into Bitget’s broader Universal Exchange, or UEX, strategy, which seeks to integrate crypto, tokenized real‑world assets and traditional financial markets under a unified account system. In a UEX white paper co‑authored with Bitget’s research team, CEO Gracy Chen said the goal is to “eliminate the fragmentation of asset access” and create a single platform where users can move between on‑chain assets, U.S. stocks, FX and other instruments without shifting venues or collateral.
Chen has argued that the future of exchanges “will not hinge on whether they provide crypto or traditional assets, but rather on how successfully they blend both,” framing Bitget’s interface and infrastructure upgrades as preparation for a world where tokenized assets and conventional markets sit side by side. Earlier this year, Bitget and security firm BlockSec introduced a UEX‑specific security standard that shifts the focus from individual‑asset protection to “system‑level” resilience across unified margin and settlement layers, reflecting the higher stakes of running multi‑asset infrastructure on shared rails.
Nansen research on Bitget’s institutional push has highlighted the exchange’s focus on low‑latency APIs, high rate limits of up to 200 requests per second and maker‑taker structures aimed at professional market participants, all of which stand to benefit from faster and more predictable matching. For active derivatives traders, the newest upgrade is a signal that Bitget wants to fight on the same execution terrain as larger venues, in a year when the race to capture flows from both the $2.4 trillion digital‑asset market and a traditional finance stack nearing $900 trillion in notional exposure is intensifying.
In previous crypto.news coverage of centralized exchange upgrades, tokenized real‑world assets and the CLARITY Act’s impact on market structure, matching‑engine performance has been framed as the quiet backbone that determines whether an exchange can survive stress events and support the next wave of institutional adoption, a role Bitget clearly wants its new infrastructure to play in this story, this story and this story.
Hormuz oil bitcoin dynamics shifted Tuesday as the Rich Starry, a Chinese-owned, U.S.-sanctioned tanker, slipped through the Strait of Hormuz in the first known breach of the U.S. naval blockade, sending WTI crude to $90.4 a barrel on April 15.
Summary
- The Rich Starry, owned by Shanghai Xuanrun Shipping, passed through the Strait carrying 250,000 barrels of methanol loaded at the UAE port of Hamriyah, not an Iranian port.
- WTI crude fell 0.88% to $90.4 per barrel on Wednesday as the crossing and diplomatic signals eased immediate supply pressure.
- Bitcoin has closely tracked oil prices since the conflict began in February, and crude holding below $95 could support BTC breaking above the $76,000 resistance it has failed three times.
Hormuz oil bitcoin markets have a new variable to price in. The Rich Starry crossed the Strait on Tuesday carrying methanol loaded at a UAE commercial port, not from an Iranian facility. That technical distinction likely explains why no confrontation occurred. U.S. Central Command had clarified that its blockade covers vessels to and from Iranian ports only. “CENTCOM forces will not impede freedom of navigation for vessels transiting the Strait of Hormuz to and from non-Iranian ports,” the command said in a statement.
WTI crude sits at $90.4 a barrel as of Wednesday morning, down sharply from the $103 spike logged when the blockade was first announced. That matters directly for bitcoin.
The blockade has been tested from its opening hours. Maritime intelligence firm Windward identified at least two vessels transiting the Strait in the first 24 hours of enforcement. The Rich Starry’s sanctioned status, flying a Malawi flag despite being Hong Kong-registered, using a spoofed AIS transponder, and departing UAE anchorage is the clearest signal yet that the shadow fleet built to circumvent sanctions is still functioning.
China’s Foreign Ministry called the blockade “dangerous and irresponsible,” urging parties to “abide strictly” to the ceasefire. Roughly 40% of China’s oil supply transits the Strait, giving Beijing a structural interest in keeping it open regardless of Washington’s pressure on Tehran.
The Oil-BTC Equation and What $90 Unlocks
Bitcoin has closely tracked oil prices throughout the conflict. BTC dropped into the low $60s when Iran first closed the Strait in late February. It rallied to $72,700 when the April 7 ceasefire was announced. Every diplomatic signal or supply relief has produced a corresponding BTC move.
“When Iran closed the Strait of Hormuz, Bitcoin dropped into the low $60s alongside everything else,” Tesseract Group’s Head of Commercial Adam Saville Brown noted in a recent analysis. The reverse is equally true: oil at $90 versus $103 removes the energy inflation narrative that has kept rate cut expectations suppressed and risk appetite compressed.
What Has to Hold for This to Matter
WTI at $90 puts crude below the $95 level analysts have flagged as the threshold where energy inflation stops crowding out Fed pivot expectations. If that level holds through the April 22 ceasefire expiry and into the April 28 FOMC meeting, bitcoin’s macro backdrop improves meaningfully. The IMF cut its 2026 global growth forecast to 3.1% from 3.3%, citing energy costs as the primary driver, making any sustained oil decline a catalyst with broad market implications.
Bitcoin sits at $74,000 after three failed breakout attempts at $76,000. The supply of crowded shorts has not unwound. A durable move in oil toward $85 to $90 could provide exactly the external catalyst that internal derivatives signals have been waiting on.
Bitcoin deposits to crypto exchanges surged on Tuesday as it rallied above $76,000, suggesting it is hitting “near-term selling pressure” as investors move their coins into a position for sale, according to CryptoQuant.
In a report on Wednesday, CryptoQuant said the size and rate of Bitcoin (BTC) inflows to exchanges have increased since the rally, with hourly inflows spiking to 11,000 BTC, the highest since December.
CryptoQuant said it is a “historically reliable warning signal of near-term selling pressure, as holders move coins to exchanges in preparation for potential distribution at key resistance zones.”
It added that the average deposit size also increased to 2.25 BTC, the highest since July 2024, and similar to January, when average deposits peaked at 2 BTC before the price nearly halved from $100,000 to $60,000.
Crypto investors have been hoping for a Bitcoin rally as the war in Iran appears to be de-escalating. However, a large shift of Bitcoin into crypto exchanges could suggest any rally would be short-lived.
TradingView shows Bitcoin hit $76,052 on Coinbase on Tuesday, securing its highest price since early February.
However, CryptoQuant said that as Bitcoin nears its $76,800 realized price, it will act “as a ceiling for relief rallies,” and traders who are nearing breakeven on their holdings will be “incentivized to sell, capping further upside.”
It added that Bitcoin’s rally in January was capped as it hit its realized price at the time, which caused prices to reverse, and “the same dynamic may repeat if selling pressure builds from current levels.”
Related: Ether open interest sees 26% increase as markets rally: Are traders into ETH again?
However, CryptoQuant said that profit-taking is “still in its early stages” as daily realized profits hover at $500 million, below the threshold of $1 billion that has “historically coincided with, or slightly preceded, local price tops.”
Daily realized profits could move above the $1 billion mark if Bitcoin rallies above $76,000 or moves toward the $76,800 realized price, CryptoQuant said, adding that could bring greater selling pressure and increase the likelihood of a stall or reversal.
Magazine: Bitcoin may take 7 years to upgrade to post-quantum — BIP-360 co-author
US Iran talks bitcoin and oil markets are watching their most consequential diplomatic moment yet as American and Iranian officials meet face-to-face for the first time, with WTI crude at $92 a barrel and BTC at $74,000.
Summary
- US and Iranian officials are holding direct talks on April 15 for the first time, with US officials saying more time is needed to reach a formal agreement.
- All prior negotiations ran through Pakistani intermediaries, including the 20-hour Islamabad session that collapsed April 13 and triggered the naval blockade.
- Analysts say a credible outcome could push oil toward $80 a barrel and send BTC above $76,000, replicating the pattern from the April 7 ceasefire rally.
US Iran talks bitcoin and oil markets are at a pivot point on April 15. Al Jazeera reported that direct negotiations between the two sides are under way, a format that differs from the Pakistani-mediated sessions that defined all prior contact. US officials described the session as preliminary, stating that more time is needed, but markets have already begun pricing the development.
WTI crude fell from $103 at the blockade announcement to $92 today. Bitcoin, which has closely tracked every diplomatic signal in this conflict, sits at $74,000 after tagging $76,000 on April 14.
Every prior round of contact between the US and Iran ran through intermediaries. The Islamabad session on April 11 and 12, mediated by Pakistan’s military leadership, lasted 20 hours and ended without an agreement. Vice President JD Vance said Iran chose “not to accept our terms.” Trump announced the naval blockade hours after Vance departed.
Direct talks remove one layer of friction from the process. When the April 7 ceasefire was announced through Pakistan, BTC jumped from $68,500 to $72,700 in under 12 hours and liquidated $427 million in short positions. A direct diplomatic breakthrough would carry materially more weight than a brokered one.
The Oil and BTC Math in Real Time
The ceasefire rally template is established. Oil lifted BTC off its post-Islamabad lows every time a credible de-escalation signal emerged. Brent’s 13% single-day fall on the original ceasefire announcement drove BTC from $68,500 to $72,700 within hours. At $92 a barrel today, oil is already 13% below the blockade-announcement spike of $103.
Coin Bureau founder Nic Puckrin has outlined $85,000 to $90,000 as the Bitcoin target in a genuine ceasefire scenario, requiring oil to fall toward $80 and softer US economic data. Every hour of direct talks that does not collapse moves that scenario forward in time.
What Markets Need to Hear
The minimum outcome markets would treat as bullish is a joint statement from both sides agreeing to extend the ceasefire past April 22. A commitment to a formal second-round negotiation process, even without a resolution, would likely push oil below $85 and give BTC the catalyst it has been waiting on through 46 straight days of negative derivatives funding rates.
“We’ve been called by the other side, and they would like to make a deal very badly,” Trump said earlier this week. That framing, now combined with the first direct engagement between the sides, puts a deal closer to the market’s horizon than at any point since the Islamabad collapse.
USDT issuer Tether quietly turned its Bitcoin reserve wallet into a $7.2b war chest, built by funneling 15% of profits into BTC as USDT’s balance sheet goes quasi-sovereign.
Summary
- Tether withdrew 951 BTC worth about $70.47m from Bitfinex into its reserve wallet.
- The address now holds 97,141 BTC, roughly $7.2b in Bitcoin, with about $2.175b in unrealized profit.
- The stack, built using 15% of profits, reinforces USDT’s balance sheet and systemic market role.
Tether has added another 951 BTC, worth roughly $70.47m, to its dedicated Bitcoin reserve address, lifting the wallet to 97,141 BTC (about $7.2b) and cementing USDT’s “quasi-sovereign” profile in crypto markets.
According to on-chain analyst Ember, “Tether’s BTC reserve address recently withdrew 951 BTC ($70.47M) from Bitfinex, acquired in Q1 2026 using 15% of profits,” with the position now sitting on an estimated $2.175b in unrealized gains at an average cost of around $51,312 per coin.
That reserve wallet now ranks as the fifth-largest Bitcoin address globally, underscoring how the issuer of USDT has quietly become one of the market’s biggest direct BTC holders.
Tether first disclosed in 2023 that it would “allocate up to 15% of net realized operating profits to Bitcoin as part of reserve diversification,” a policy it has reiterated in multiple updates as it steadily increased its stack.
In a previous crypto.news story, the company’s Q4 2023 attestation showed it made $2.8b in net profits, driven partly by appreciation in its Bitcoin and gold holdings, while also growing excess reserves above $5b.
Subsequent reporting highlighted Tether buying 8,888 BTC tranches through 2024 and 2025, pushing holdings beyond 96,000 BTC even before the latest move, as USDT supply — tracked on the crypto.news USDT price page — expanded alongside record Treasury-bill income.
The latest 951 BTC withdrawal is therefore less about another bullish Bitcoin bet and more about fortifying USDT as a dollar-pegged instrument with its own hard-asset war chest that can buffer redemptions and market stress.
While the transaction technically increases BTC exposure, the crucial story is USDT’s balance sheet and growing resemblance to a private-sector reserve manager whose decisions can sway crypto liquidity and risk sentiment.
As crypto.news has reported on the rise of regulated stablecoins and tokenized real-world assets, stablecoin issuers sit at the center of flows between traditional Treasuries, tokenized commodities and on-chain lending markets, making reserve composition a key macro variable rather than a footnote.
If Tether continues to channel double-digit billions in annual profits into Bitcoin and other hard assets, each quarterly rebalance will not only move spot markets, but also shape how regulators, banks and trading venues assess the quality and resilience of USDT’s backing.
Eric Swalwell resignation took effect April 15 as the California Democrat stepped down from his seven-term House seat, capping a political collapse that erased both his congressional career and his frontrunner status in the California governor’s race in under one week.
Summary
- Swalwell announced his resignation April 13 under bipartisan pressure, with the House Ethics Committee having opened a formal investigation the same day into whether he engaged in sexual misconduct toward a staffer under his supervision.
- A fifth woman, Lonna Drewes, held a news conference April 14 in Beverly Hills alleging she was drugged and assaulted by Swalwell in a West Hollywood hotel in 2018.
- The resignation leaves California’s 14th district vacant ahead of the November midterms, with California Gov. Gavin Newsom to call a special election.
Eric Swalwell resignation marked the abrupt end of a 13-year congressional career that had, as recently as last week, been on course to produce California’s next governor. Swalwell, 45, resigned after at least five women publicly accused him of sexual misconduct and assault in reports first published by the San Francisco Chronicle and CNN.
“I will fight the serious, false allegations made against me,” Swalwell wrote in his resignation statement. “However, I must take responsibility and ownership for the mistakes I did make.”
The allegations surfaced late last week. A former staffer told CNN she was sexually assaulted by Swalwell on two occasions, including one incident that left her “bruised and bleeding.” Three other women alleged unsolicited explicit messages and nude photos via Snapchat. By Sunday, all 21 of Swalwell’s congressional endorsements for the governor’s race had been withdrawn. He suspended the campaign that night.
The collapse accelerated April 14 when a fifth woman, Lonna Drewes, appeared at a Beverly Hills news conference represented by attorney Lisa Bloom. Drewes alleged Swalwell drugged and assaulted her in a West Hollywood hotel in 2018. “When I arrived at his hotel room I was already incapacitated,” she said in remarks carried by multiple outlets. “He raped me.” Swalwell’s attorney denied all assault allegations.
The Congressional Math After His Exit
The House Ethics Committee opened a formal investigation April 13. That probe will likely end with his departure. Republican Rep. Anna Paulina Luna had introduced a resolution to expel Swalwell, but confirmed she withdrew it once his resignation was official. Republican Rep. Tony Gonzales of Texas also announced his own resignation the same day, citing an affair with a former staffer who later died by suicide.
Swalwell’s exit leaves a vacancy in California’s 14th district, a safe Democratic seat east of San Francisco. The special election timeline is at Newsom’s discretion. Democrats head into the November midterms with one fewer House member and a significant reputational story to manage in what is already a challenging election cycle.
Democratic Party Fallout
Senator Adam Schiff, who had endorsed Swalwell’s gubernatorial campaign, told reporters the allegations were “shocking and deeply upsetting,” adding that he believed the resignation was “the right decision.” No prominent Democrat has publicly disputed that assessment.
The California governor’s race remains wide open. Swalwell had led several early polls before the scandal surfaced, and his exit reshuffles a Democratic primary that was already crowded with candidates hoping to succeed Newsom.
IRS 1099-DA crypto reporting requirements take effect for the first time on Tax Day 2026, requiring every American who sold or traded digital assets in 2025 to account for those transactions, while Treasury reports 53 million filers already claimed new Trump administration exemptions.
Summary
- Form 1099-DA is now the IRS’s mandatory reporting form for 2025 digital asset transactions filed by brokers, though basis reporting remains voluntary for this first year, creating a gap crypto holders must bridge themselves.
- Treasury says 53 million Americans used new Trump-era exemptions including no tax on tips and overtime, car loan interest deductions, and Trump Accounts for children’s savings, with average refunds rising 11% to $3,462.
- IRS CEO Frank Bisignano testified to the Senate Finance Committee on Tax Day touting the Republican tax law’s implementation while Democrats focused on IRS data-sharing agreements with ICE.
IRS 1099-DA crypto obligations are real and unavoidable for the first time this filing season. The IRS’s first dedicated digital asset reporting form, a simplified version of an earlier draft that dropped requirements for wallet addresses and transaction IDs, went into mandatory use for brokers covering all 2025 digital asset transactions.
But 53 million Americans are also sitting down today to take advantage of a completely different set of tax changes, the Trump-era exemptions that have reshaped this year’s filing season.
For 2025 transactions, custodial brokers were required to send Form 1099-DA covering gross proceeds by February 17, 2026. The catch: basis reporting is voluntary for 2025. That means most 1099-DA forms do not include cost basis, and the IRS has been explicit: “taxpayers will have to calculate basis to determine their gain or loss.”
Crypto holders who treat their 1099-DA as a complete document and do not reconcile it against their own transaction records face significant mismatch risk when the IRS begins cross-referencing broker data. Every taxpayer must also answer the digital asset question on Form 1040, yes or no, regardless of whether they received a 1099-DA. Those who skip it are answering incorrectly under penalty of perjury.
Investors who need to calculate their own gains and losses have a range of dedicated tracking tools available, as basis reconstruction across wallets, exchanges, DeFi positions, and staking activity falls entirely on the taxpayer this year.
The Broader Tax Day Picture
On the non-crypto side, Treasury says the 2026 filing season has set several records for new exemption uptake. More than 53 million filers claimed at least one new provision from the Republican tax law, including 6 million who claimed no tax on tips, along with take-up of no-tax treatment for certain car loan interest, senior deductions, and Trump Accounts, a children’s savings vehicle introduced in the bill.
Average refunds stand at $3,462, up 11% from last year’s $3,116. “People are getting refunds of $5,000, $8,000, $11,000 that they had no idea they were getting,” Trump told Fox Business on Wednesday.
The Political Backdrop
IRS CEO Frank Bisignano testified to the Senate Finance Committee on Tax Day, with his prepared remarks touting the agency’s implementation of the Republican tax law. Democrats shifted focus to IRS data-sharing agreements with ICE, raising concerns about confidential taxpayer information being routed to immigration enforcement. The IRS workforce has been reduced by 27% over the past year through DOGE-driven cuts.
For crypto holders, the administration’s posture matters beyond today. Starting with the 2026 tax year, mandatory basis reporting kicks in, meaning the 1099-DA compliance pressure only increases from here.
Goldman Sachs Targets Income-Focused Bitcoin Exposure
Goldman Sachs has filed for a Bitcoin Premium Income ETF with the U.S. Securities and Exchange Commission. The product focuses on income generation while offering controlled exposure to Bitcoin price movements. It reflects growing demand for structured crypto products among traditional market participants.
The fund will not hold Bitcoin directly, and it avoids direct spot ownership. Instead, it will invest in shares of existing spot Bitcoin exchange-traded products. This approach allows the bank to offer exposure while managing operational and custody risks.
Additionally, the ETF will use an options overwrite strategy to generate income. This method involves selling options against held positions to collect premiums regularly. As a result, the fund aims to deliver steady income with moderated exposure to price swings.
The strategy limits potential upside, but it also reduces downside risk during market declines. This design suits clients seeking stability and predictable returns over aggressive growth. Therefore, the product aligns with demand for lower-volatility crypto exposure.
Structured Strategy Reflects Shifting Institutional Approach
The ETF introduces a structured format that blends traditional finance techniques with digital asset exposure. Goldman Sachs has adapted familiar income strategies to fit the evolving cryptocurrency market. This move signals deeper integration between legacy finance and digital assets.
Market analysts describe the strategy as tailored for conservative portfolios seeking alternative income streams. The fund sacrifices some price gains in exchange for regular yield generation. Consequently, it positions itself differently from standard spot Bitcoin ETFs.
Moreover, the indirect exposure through existing ETPs adds another layer of diversification. It reduces reliance on a single asset structure while maintaining exposure to Bitcoin trends. This structure also aligns with regulatory and operational preferences.
The filing highlights how banks continue to refine crypto offerings beyond simple price tracking. Institutions now focus on customization, risk control, and income strategies. This shift indicates a broader evolution in how financial firms approach digital assets.
Competition Intensifies After Morgan Stanley ETF Success
The filing follows a strong debut from Morgan Stanley’s recently launched spot Bitcoin ETF. The product introduced aggressive pricing and triggered competition among major asset managers. It set a new benchmark for cost efficiency in Bitcoin ETF offerings.
Morgan Stanley priced its ETF at a low expense ratio, undercutting key competitors in the market. This pricing strategy pressured other firms to adjust their fee structures. As a result, competition has increased across the Bitcoin ETF segment.
Other major players have also entered the space with varying strategies and pricing models. These include funds focusing on direct exposure and others offering hybrid approaches. Goldman Sachs now adds a structured-income-focused option to the mix.
The growing range of products reflects rising institutional interest in Bitcoin-linked investments. Banks continue to expand offerings to capture different segments of market demand. This trend suggests continued innovation and competition in crypto financial products.
EToro said Wednesday it agreed to acquire self-custodial crypto wallet provider Zengo, deepening the trading platform’s push into onchain products as digital assets remain central to its business.
The deal will let eToro add Zengo’s wallet technology and broaden its offering in areas such as tokenized assets, prediction markets, perpetuals and yield products, according to the company. Terms were not disclosed. Bloomberg reported the transaction is worth about $70 million, mostly in cash, citing a person familiar with the matter.
CEO Yoni Assia said at Paris Blockchain Week during a fireside chat that the acquisition fits eToro’s effort to attract a more crypto native user base while expanding beyond regulated brokerage products into self-custody infrastructure.
Crypto activities have become an important revenue source for the platform. eToro reported total revenue and income of $13.8 billion in 2025, of which $12.98 billion was revenue from crypto assets.
Assia keeps $250,000 Bitcoin target
At Paris Blockchain Week, Assia said he expects the current market slowdown to last another quarter before Bitcoin (BTC) returns to an accumulation phase, eventually pushing the token above $250,000.
“Bitcoin is on the path eventually to $250,000, $500,000 and beyond.”
EToro’s CEO is the latest industry figure to call for a $250,000 Bitcoin price target, following BitMEX co-founder Arthur Hayes and “Rich Dad Poor Dad” author Robert Kiyosaki.
Related: Deutsche Börse invests $200 million in Kraken parent Payward
However, other large companies remain divided on Bitcoin’s trajectory for the rest of the year, with some questioning the relevance of the four-year cycle theory.
Galaxy Digital urged investor caution and described the year ahead as “too chaotic to predict,” citing looming uncertainties such as the US midterm elections and shifting monetary policy.
Regardless of the timeline, a Bitcoin rally to $250,000 would require Bitcoin’s price to increase by about 3.3-fold and implies a $5 trillion market capitalization. This would make BTC the world’s second-largest asset after gold, up from the 12th spot, according to CompaniesMarketCap data.
Magazine: Can Robinhood or Kraken’s tokenized stocks ever be truly decentralized?
Bitcoin’s defense against a future of quantum threats is moving from theoretical caution to concrete planning, according to Adam Back, the CEO of Blockstream and a veteran figure in the Bitcoin space. Speaking at Paris Blockchain Week, Back urged the ecosystem to begin building quantum-resistant options now, even as the current threat remains largely in the realm of long-term speculation.
Back argued that quantum computing has a long way to go before posing a real, practical danger to Bitcoin’s cryptography. “Quantum computing still has a lot to prove. Current systems are essentially lab experiments. I’ve followed the field for over 25 years, and progress has been incremental,” he said. Yet, he emphasized that Bitcoin should prepare with a cautious, staged approach—favoring optional upgrades that enable a migration to quantum-resistant cryptography if and when needed.
While many in the industry still view the threat as decades away, the discussion has intensified as researchers reexamine how quickly quantum capabilities could evolve. The conversation sits alongside ongoing debates about how to safeguard wallets and networks should quantum computers become capable of breaking current cryptographic protections. Back’s remarks come with a broader push across the industry to consider a measured, upgrade-ready path rather than waiting for a crisis to force change.
Back’s stance on readiness is complemented by his ongoing work at Blockstream, which has a dedicated quantum-focused team investigating potential threat vectors to Bitcoin. As part of that research, Back highlighted efforts to deploy hash-based signatures on Blockstream’s Bitcoin layer-2 Liquid Network, describing it as a practical step toward resilience while preserving compatibility with existing Bitcoin users.
Preparation is key. Making changes in a controlled way is far safer than reacting in a crisis.
He also noted that the Taproot upgrade could accommodate alternative signature schemes on the Bitcoin network without disrupting current users, suggesting a pathway for gradual adoption rather than disruptive overhauls.
Key takeaways
- Quantum risk is not imminent in the eyes of all observers, but proactive preparedness is gaining ground. Back reiterates a decades-long horizon, yet urges a structured upgrade plan rather than waiting for a crisis.
- Concrete steps are being explored at the protocol and layer-2 level, including hash-based signatures on Liquid and potential signature-scheme diversification under Taproot, to diversify risk without breaking existing wallets.
- Analysts and researchers are racing to quantify risk, with recent comments tying the pace of quantum advancement to broader industry readiness. The conversation weighs the balance between early action and avoiding unnecessary disruption.
- The discussion around how to treat quantum-vulnerable coins has sparked heated debate within the community, highlighting tensions between safety measures and user rights in governance decisions.
- Developers acknowledge the possibility that, if quantum capabilities materialize sooner than expected, the Bitcoin community would act quickly to adapt, drawing on past experience where urgent bug fixes spurred rapid consensus.
Quantum risk and Bitcoin’s evolving blueprint
The quantum threat has reemerged in public discourse as researchers revisit the speed at which cryptographic protections could be undermined. Last month, Google and California Institute of Technology researchers suggested that functional quantum computers could arrive sooner than previously anticipated and that far less computational power might be required to break cryptography than once thought. Google even raised the prospect that quantum machines could potentially break Bitcoin’s cryptography within minutes, enabling an “on-spend” attack if wallets were exposed to quantum-enabled fraud.
In response, Back signaled that Bitcoin developers would pivot quickly if the risk materialized. “We’ve seen that before — bugs have been identified and fixed within hours. When something becomes urgent, it focuses attention and drives consensus,” he said. This sentiment underscores a broader industry pattern: readiness is valuable not because a threat is immediate, but because it concentrates efforts and accelerates cooperative problem-solving.
Beyond the research community, the discussion has a practical roadmap dimension. At the protocol level, Taproot’s design is seen as offering flexibility for introducing alternative cryptographic schemes without forcing a hard fork or disrupting current users. On the layer-2 front, Liquid Network has begun to test hash-based signatures to diversify post-quantum risk vectors without removing the option for existing Bitcoin transactions to operate as they do today.
Contested ideas: freezing quantum-vulnerable coins
The quantum risk debate recently intensified with a proposal from Bitcoin developer Jameson Lopp and five other security researchers to freeze quantum-vulnerable Bitcoin — including holdings associated with Satoshi Nakamoto’s estimated stash — to prevent theft once quantum computers become functional. The proposal, known as BIP-361, aims to preemptively shield funds by halting transferability of coins deemed at risk from quantum exploitation.
Reaction within the community was swift and critical. Critics described the idea as authoritarian and confiscatory, arguing it would amount to stealing property to avert potential future losses. Others voiced concern that such a mechanism could set dangerous precedents for governance over personal holdings, complicating trust and property rights within a decentralized system. Supporters, however, contended that a well-designed framework could avert catastrophic losses should quantum-era theft become feasible, highlighting the trade-off between security and autonomy.
The broader takeaway is that even technical debates on upgrading cryptographic primitives can quickly unfold into governance questions. As the community weighs options—ranging from soft-fork migrations to controlled asset freezes—participants emphasize the need for transparent, consensus-driven processes that align with Bitcoin’s long-term security goals.
What lies ahead for investors and builders
The unfolding discussions around quantum preparedness carry practical implications for miners, developers, and users alike. For investors, the cadence of progress toward quantum-resilient primitives can affect risk management and discount rates applied to long-horizon cash flows tied to network security. For developers, the emphasis on optional upgrades suggests a preference for modular, non-disruptive paths that preserve user experience while expanding the cryptographic toolkit. For users, the core message is that upgrades should be deployable in a manner that minimizes the need to resecure funds or alter behavior dramatically.
Market participants are watching whether Bitcoin’s governance mechanism can reach broad agreement on a path that balances resilience with decentralization. As Back and others advocate, the most robust strategy may be to embed migration options within existing constructs, allowing the network to evolve gradually without forcing abrupt changes on holders who may be unaffected by early-stage testing.
Looking ahead, the key questions are clear: How quickly will quantum research translate into practical defense mechanisms? Will Taproot’s flexibility prove sufficient for a seamless upgrade path, or will new cryptographic approaches require more substantial protocol changes? And how will the community reconcile urgent risk mitigation with the core ethos of permissionless innovation?
Readers should keep an eye on progress in post-quantum cryptography research, ongoing experiments on Layer-2 solutions, and any governance milestones that define how and when Bitcoin could adopt quantum-resistant technologies. While the threat remains uncertain in its timing, the consensus-building process around upgrades is already shaping the next phase of Bitcoin’s security architecture.
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