New ETF Seeks to Profit from Bitcoin's Nighttime Gains
2.1 Investments A new ETF aims to capture Bitcoin's overnight gains by holding the cryptocurrency only during U.S. after-hours and shifting to Treasuries during the day, based on data showing stronger returns at night.
Several filings reveal plans for a new Bitcoin exchange-traded fund (ETF) called the Nicholas Bitcoin and Treasuries AfterDark ETF. This ETF is designed to provide exposure to Bitcoin exclusively during U.S. after-hours, buying Bitcoin at the close of U.S. markets (4:00 p.m. ET) and selling at the open (9:30 a.m. ET). During daytime hours, the fund shifts its assets into short-term U.S. Treasuries, money market funds, or cash equivalents to preserve capital and generate yield. The ETF aims to capitalize on data indicating that a significant portion of Bitcoin’s historical gains occur outside regular U.S. trading hours, a pattern observed across multiple years and studies. The fund does not hold Bitcoin directly but seeks exposure through futures, options, or spot Bitcoin ETFs. The strategy is intended to offer investors targeted, time-specific exposure to Bitcoin’s overnight price movements, potentially reducing volatility linked to daytime trading. However, the approach may face challenges such as tracking errors and transaction costs due to frequent trading. The ETF’s approval by the SEC is still pending.
