Good afternoon, all! And welcome back to our US readers who may have unplugged over the long weekend. 

We hope it was restful, because this week is already shaping up to be very busy. From a market update to a marketing company set to load up on ether, let’s get into it:

Trade winds shift

Investors were once again reminded over the weekend that when it comes to the trade war, threats often do not become reality. 

US stocks were on the rise Tuesday thanks to signs the US could be approaching a deal with the EU and May’s better-than-expected consumer confidence survey. 

Let’s start with a trade war update. Today’s rally follows a long weekend of heightened tensions after President Trump on Friday said he would impose a 50% tariff on the EU, sparking a selloff late in the session. By Sunday, though, he announced a pause on the levies until July 9.

“Talks will begin rapidly,” Trump wrote in a Truth Social post Sunday night. 

The S&P 500 and Nasdaq Composite indexes had erased Friday’s losses — trading 2% and 2.5% higher on the day, respectively, as of 2 pm ET. 

Apple shares were also on the rise after facing headwinds on Friday following Trump’s threat to impose a 25% on iPhones made outside the US. I’ve written before about why I think Trump will be forced to spare Apple when it comes to his trade policy agenda, and we saw a hint of that over the weekend. 

Trump’s Friday morning Truth Social post triggered a selloff in APPL futures; the stock opened 3.5% lower that day. By Tuesday, the administration was doing damage control. National Economic Council Director Kevin Hassett said this morning on CNBC that they “don’t want to harm Apple.” 

By 2 pm ET, Apple shares were back in the green, trading 2.7% higher on the day and just below last Thursday’s close. 

Trump’s threat and Hassett’s comments come about six weeks after the administration issued a tariff “exemption” on certain consumer electronics, including iPhones. We’re getting whiplash. 

It’s true that Trump has said he’s willing to tolerate a level of pain in markets (remember, don’t be a “panican”), but we’ve seen time and time again that there’s a threshold. That’s one explanation for these back-and-forth policies that change on a sometimes hourly basis. If you ask Karoline Leavitt, though, the president is practicing the “Art of the Deal.” 

Either way, stocks are trading on Truth Social posts. If anyone tells you they know where these tariff policies will land, take whatever they say with a grain of salt. 

The other thing moving markets today was May’s consumer confidence survey. 

The report came in much higher than expected, gaining 12.3 points on the month to hit 98. Analysts had projected a reading of 87. The numbers suggest that households may be feeling more positive about where tariffs will end up. 

We know there’s still a lot up in the air, and like we said, one Truth Social post could send shares tumbling to new lows. But it seems that until consumers actually see higher prices, their outlook isn’t too bad. 

Next up, the FOMC’s May meeting minutes are set to be released tomorrow afternoon. Investors will be looking for signs about how central bankers are thinking about future rate cuts. March’s minutes revealed that committee members are very comfortable with waiting for more economic data before adjusting interest rates in response to tariffs. 

Keep an eye on your inbox tomorrow for our analysis.

— Casey Wagner

The net inflows into digital asset investment products last week, per CoinShares data. 

US spot bitcoin ETFs led the charge, bringing in nearly $2.8 billion of net inflows from May 19 to May 23, according to Farside Investors data. Roughly a third of those flows ($935 million) came on May 22 alone, as BTC was reaching a new peak around $112,000. 

Ethereum products, meanwhile, saw inflows of $326 million. That was a 15-week high and marked the fifth consecutive week of gains for the category. ETH’s price is up nearly 7% from a week ago.

As corporate bitcoin treasury strategies proliferate, one firm is set to focus on buying ether at scale. 

We all know about Strategy’s relentless bitcoin purchases (it bought another 4,020 BTC last week) and how more companies are following its lead. 

Well, SharpLink Gaming revealed Tuesday that it intends to use the proceeds of a $425 million private placement to buy ETH. Ethereum co-founder Joseph Lubin is set to become SharpLink’s board chair. 

Shares of the Nasdaq-listed company were up roughly 400% on the day at 2 pm ET. 

“ETH is a scarce asset that has bouts of deflation when chain activity is high, while simultaneously providing a nice yield through staking,” said Matt Lason, CIO at crypto hedge fund Globe 3 Capital. “This combination of scarcity, deflation and yield is an ideal scenario for a treasury strategy.”

While others have recently bought ETH on a smaller scale (Beyond Medical, SRx Health Solutions), Lason told me SharpLink is set to have a first-mover advantage similar to Michael Saylor-led Strategy. Having Lubin and a “AAA-list” of Web3 investments companies (Consensys, Pantera, GSR, Galaxy Digital, etc.) certainly helps, he noted. 

LMAX Group crypto strategist Joel Kruger said capital is expected to flow beyond bitcoin as crypto matures, pointing out the falling BTC dominance and growing adoption of ether ETFs.

“While Ethereum carries more risk given its evolving technology and broader use case, its role as the backbone of internet capital markets makes ETH exposure a logical, if bolder, move for companies looking to diversify their crypto treasury strategy,” he told me.

Kruger said ETH appears to have formed a solid bottom and could retest its 2021 high (~$4,880) in the coming months. ETH was trading around $2,700 at 2 pm ET — up 48% over the past month.

“While Solana has captured some short-term liquidity, Ethereum remains the more battle-tested, decentralized and developer-diverse ecosystem,” he added.

Some will continue to prefer Ethereum’s rival layer-1 blockchain. Sol Strategies in April announced a convertible note facility of up to $500 million dedicated to acquiring and staking solana tokens.

As for Lason’s outlook for ETH, he expects a new all-time high by the year’s end and a possible push to $8,000 by the end of 2026. 

Price predictions are, well, just predictions. But it’s good to have them on the record.

— Ben Strack