Daily Update:

• Yesterday evening President Trump agreed to pause US tariffs of 25% on imports from Canada and Mexico after reaching last minute deals with both Canadian PM Justin Trudeau and Mexican President Claudia Sheinbaum. 
• The pause will be in place for 30 days as Trump looks for a more permanent “final economic deal” over that period. 

• Equity markets whipsawed in reaction to the news – and both the S&P 500 and the Nasdaq 100 ended the day 0.8% lower. 
• Cryptocurrencies had a brief sigh of relief – BTC was up 5% to $102K and ETH swiftly regained the $2.9K mark. 
• ETHs volatility term structure is largely inverted following the price action of yesterday, while BTC has flattened after experiencing a similar inversion. ETH’s futures implied yields have rebounded from their sharp decline and are now trading at higher levels, while still maintaining a steep curve. 
• Yesterday’s $2B liquidation event did not however cause a major reaction in BTC Spot ETFs. Outflows amounted to $234.4B, less than the $457.6B outflows during the DeepSeek market shakeout. Interestingly, Ethereum Spot ETFs had inflows of $83.6M, their largest since the 16th of January. 

• Alongside the news of tariff delays, the President also signed an executive order to create a sovereign wealth fund in the U.S., led partially by Treasury Secretary Scott Bessent, though it remains unclear whether that fund could include Bitcoin. 

• The relief rally was not to last very long however – crypto-assets once again faced sell pressure with BTC falling to $98K as China announced 10-15% additional tariffs on an array of US imports, including natural gas, coal, crude oil and farm equipment, which would be effective from the 10th of February. 

• TradFi exchange Cboe Global Markets has announced plans to introduce 24x5 trading for U.S. equities on its Cboe EDGX Equities Exchange (EDGX), subject to regulatory review, this is to meet growing global demand for market access.

• Uniswap v4 has officially been rolled out on Ethereum, Arbitrum, Avalanche, Base, Blast, BNB Chain, Ink, OP Mainnet, Polygon, Soneium, World Chain, and Zora. A key standout feature of Uniswap v4 is its offering of “hooks”, smart contracts to allow DeFi developers to link their own protocols back to Uniswap v4’s technology.

• Circle Internet Group, the issuer of the USDC stablecoin has acquired Hashnote, the issuer of the USYC tokenised money market fund, with plans to integrate USYC into its offering and provide easier access to the conversion between the tokens.

This Week’s Calendar:

Charts Of The Day: