Proposed ‘AfterDark’ Bitcoin ETF Would Skip U.S. Trading Hours

Weary U.S.-based bitcoin BTC$93.110,27 bulls might think it's their imagination that they seem to wake up every morning to BTC doing pretty well only for prices to head lower during the U.S. trading session.

They are, in fact, not imagining things.

Data from crypto analytics platform Velo.xyz shows that over the past year, bitcoin is more likely to be in the green when traditional U.S. markets are closed and in the red when they're open.

Bitcoin performance by the hour over past year (Velo.xyz)

Bloomberg's Eric Balchunas said the data on better performance after U.S. hours was similar for 2024 as well and suggests the spot ETFs or derivatives positioning could be having an impact.

Seeking to take advantage, Nicholas Financial Corporation, a boutique wealth management firm, has filed with the U.S. Securities and Exchange Commission (SEC) to launch a bitcoin BTC$93.110,27 ETF that holds the asset only during overnight hours, opting out of the U.S. trading day entirely.

The fund, called the Nicholas Bitcoin and Treasuries AfterDark ETF (NGTH), would buy bitcoin at 4 p.m. ET—when U.S. markets close—and sell by 9:30 a.m. ET the following day, before the markets reopen. During daytime hours, the fund would rotate into short-term U.S. Treasuries to preserve capital and generate yield.

The firm also submitted paperwork for a second product, the Nicholas Bitcoin Tail ETF (BHGD).

If approved, the ETF would add a novel twist to the growing ecosystem of bitcoin investment products by treating time of day as a key factor in its strategy.