The post Proposed Bitcoin AfterDark ETF Seeks Overnight Price Action During Market Closures appeared on BitcoinEthereumNews.com. The Nicholas Bitcoin and Treasuries AfterDark ETF proposes trading Bitcoin-linked products during overnight hours when U.S. markets are closed, aiming to capture price gains in that window. Filed with the SEC on December 9, it uses at least 80% of assets in Bitcoin futures and ETFs, resetting positions daily without direct Bitcoin holdings. Overnight Trading Strategy: The ETF targets Bitcoin price movements after U.S. market close, entering positions then and exiting shortly after the next open. Asset Allocation: Focuses on listed Bitcoin futures, ETFs, ETPs, and options, with the remainder in U.S. Treasuries for stability. Performance Potential: Backtests show a 222% gain from overnight trades since January 2024, contrasting with a 40.5% loss in daytime trading, per Bespoke Investment Group data. Discover the Nicholas Bitcoin and Treasuries AfterDark ETF, designed for overnight Bitcoin gains. Learn how this innovative fund captures after-hours volatility—explore its strategy and potential impact on crypto investing today. What is the Nicholas Bitcoin and Treasuries AfterDark ETF? The Nicholas Bitcoin and Treasuries AfterDark ETF is a proposed exchange-traded fund that seeks to capitalize on Bitcoin’s price movements during the overnight hours when U.S. financial markets are closed. According to a filing submitted to the Securities and Exchange Commission on December 9, the fund would enter Bitcoin-linked trades after the close of U.S. equity markets and exit those positions shortly after the following day’s open. This approach allows investors to gain exposure to Bitcoin’s volatility outside traditional trading hours without the fund holding actual Bitcoin. The ETF’s structure emphasizes compliance and safety, allocating at least 80% of its assets to Bitcoin futures contracts, exchange-traded products (ETPs), other Bitcoin ETFs, and options related to those instruments. The remaining assets would be invested in U.S. Treasuries, providing a buffer against market fluctuations. By focusing exclusively on listed products, the fund… The post Proposed Bitcoin AfterDark ETF Seeks Overnight Price Action During Market Closures appeared on BitcoinEthereumNews.com. The Nicholas Bitcoin and Treasuries AfterDark ETF proposes trading Bitcoin-linked products during overnight hours when U.S. markets are closed, aiming to capture price gains in that window. Filed with the SEC on December 9, it uses at least 80% of assets in Bitcoin futures and ETFs, resetting positions daily without direct Bitcoin holdings. Overnight Trading Strategy: The ETF targets Bitcoin price movements after U.S. market close, entering positions then and exiting shortly after the next open. Asset Allocation: Focuses on listed Bitcoin futures, ETFs, ETPs, and options, with the remainder in U.S. Treasuries for stability. Performance Potential: Backtests show a 222% gain from overnight trades since January 2024, contrasting with a 40.5% loss in daytime trading, per Bespoke Investment Group data. Discover the Nicholas Bitcoin and Treasuries AfterDark ETF, designed for overnight Bitcoin gains. Learn how this innovative fund captures after-hours volatility—explore its strategy and potential impact on crypto investing today. What is the Nicholas Bitcoin and Treasuries AfterDark ETF? The Nicholas Bitcoin and Treasuries AfterDark ETF is a proposed exchange-traded fund that seeks to capitalize on Bitcoin’s price movements during the overnight hours when U.S. financial markets are closed. According to a filing submitted to the Securities and Exchange Commission on December 9, the fund would enter Bitcoin-linked trades after the close of U.S. equity markets and exit those positions shortly after the following day’s open. This approach allows investors to gain exposure to Bitcoin’s volatility outside traditional trading hours without the fund holding actual Bitcoin. The ETF’s structure emphasizes compliance and safety, allocating at least 80% of its assets to Bitcoin futures contracts, exchange-traded products (ETPs), other Bitcoin ETFs, and options related to those instruments. The remaining assets would be invested in U.S. Treasuries, providing a buffer against market fluctuations. By focusing exclusively on listed products, the fund…

Proposed Bitcoin AfterDark ETF Seeks Overnight Price Action During Market Closures

2025/12/11 11:16
  • Overnight Trading Strategy: The ETF targets Bitcoin price movements after U.S. market close, entering positions then and exiting shortly after the next open.

  • Asset Allocation: Focuses on listed Bitcoin futures, ETFs, ETPs, and options, with the remainder in U.S. Treasuries for stability.

  • Performance Potential: Backtests show a 222% gain from overnight trades since January 2024, contrasting with a 40.5% loss in daytime trading, per Bespoke Investment Group data.

Discover the Nicholas Bitcoin and Treasuries AfterDark ETF, designed for overnight Bitcoin gains. Learn how this innovative fund captures after-hours volatility—explore its strategy and potential impact on crypto investing today.

What is the Nicholas Bitcoin and Treasuries AfterDark ETF?

The Nicholas Bitcoin and Treasuries AfterDark ETF is a proposed exchange-traded fund that seeks to capitalize on Bitcoin’s price movements during the overnight hours when U.S. financial markets are closed. According to a filing submitted to the Securities and Exchange Commission on December 9, the fund would enter Bitcoin-linked trades after the close of U.S. equity markets and exit those positions shortly after the following day’s open. This approach allows investors to gain exposure to Bitcoin’s volatility outside traditional trading hours without the fund holding actual Bitcoin.

The ETF’s structure emphasizes compliance and safety, allocating at least 80% of its assets to Bitcoin futures contracts, exchange-traded products (ETPs), other Bitcoin ETFs, and options related to those instruments. The remaining assets would be invested in U.S. Treasuries, providing a buffer against market fluctuations. By focusing exclusively on listed products, the fund avoids direct spot Bitcoin holdings or on-chain custody, ensuring all exposures reset each morning after market open. This daily reset mechanism is designed to mitigate prolonged risk while targeting the unique price dynamics that emerge when global markets, particularly in Asia and Europe, influence Bitcoin’s value.

The filing highlights that Bitcoin often experiences significant price action overnight, driven by international trading activity. For instance, while U.S. markets sleep, exchanges in other time zones continue to operate, leading to potential opportunities that daytime traders might miss. The AfterDark ETF aims to bridge this gap, offering U.S. investors a way to participate in these movements through a regulated vehicle.

How Does the AfterDark ETF’s Overnight Strategy Work?

The core of the Nicholas Bitcoin and Treasuries AfterDark ETF’s strategy revolves around timing: trades are confined to the overnight window, specifically from the U.S. market close to shortly after the next open. This period, often overlooked in traditional investing, has shown promising results in historical analyses. Bespoke Investment Group conducted a backtest using the iShares Bitcoin Trust ETF (IBIT), revealing that buying at the U.S. close and selling at the next open since January 2024 yielded a 222% gain. In stark contrast, the same test applied to daytime hours—buying at open and selling at close—resulted in a 40.5% loss.

These figures underscore the potential alpha from overnight sessions, where Bitcoin’s price can swing due to lower liquidity and global influences. The ETF would replicate this by investing primarily in derivatives tied to Bitcoin, such as futures on the Chicago Mercantile Exchange (CME) and shares of existing spot Bitcoin ETFs. Options on these ETFs could further enhance returns or provide hedging. U.S. Treasuries in the portfolio would serve as collateral and a low-risk anchor, with short-term bills ensuring liquidity for daily position adjustments.

Regulatory experts note that this model aligns with SEC guidelines for commodity-based ETFs, as it avoids direct crypto custody. A quote from an ETF analyst at Morningstar emphasizes, “By sticking to regulated futures and ETPs, the AfterDark ETF minimizes counterparty risks while tapping into Bitcoin’s 24/7 nature.” Data from ETF.com indicates that since spot Bitcoin ETF approvals in January 2024, over 30 such products have launched in the U.S., amassing billions in assets under management. Recent inflows further validate growing institutional interest: spot Ethereum ETFs saw $177.64 million on a recent Tuesday, surpassing Bitcoin’s $151.74 million, according to SoSoValue reports.

Bitcoin’s current price stands at $92,320, reflecting a nearly 1% daily decline but stability year-to-date amid broader market choppiness. The 12% monthly drop highlights volatility, yet ETF flows remain positive, with Solana ETFs adding $16.54 million and XRP ETFs $8.73 million on the same day. Ethereum ETFs have absorbed $21.40 billion overall, representing about 5% of its $400 billion market cap. This momentum follows policy shifts, including President Donald Trump’s advocacy for lighter regulations at the SEC and CFTC, which has accelerated filings for products linked to assets like Aptos, Sui, Bonk, and Dogecoin.

Source: Bespoke

The AfterDark ETF’s innovation lies in its disciplined approach to after-hours trading, potentially setting a precedent for time-specific crypto strategies. Investors should note that while backtested results are encouraging, past performance does not guarantee future outcomes, and Bitcoin’s inherent risks—such as regulatory changes or market sentiment shifts—apply.

Frequently Asked Questions

What Makes the Nicholas Bitcoin and Treasuries AfterDark ETF Different from Traditional Bitcoin ETFs?

The Nicholas Bitcoin and Treasuries AfterDark ETF stands out by focusing exclusively on overnight trading sessions, entering Bitcoin-linked positions after U.S. markets close and exiting them post-open. Unlike standard Bitcoin ETFs that trade during regular hours, this fund targets the 222% backtested gains from after-hours volatility since January 2024, as analyzed by Bespoke Investment Group. It allocates 80% to futures, ETPs, and related options, with the rest in Treasuries, ensuring no direct Bitcoin exposure.

Is the AfterDark ETF Safe for Investors Amid Bitcoin’s Volatility?

Yes, the AfterDark ETF prioritizes safety through regulated instruments like CME Bitcoin futures and approved ETFs, avoiding spot holdings or custody risks. Daily position resets limit overnight exposure, while Treasuries provide stability. With Bitcoin at $92,320 and recent ETF inflows hitting $177.64 million for Ethereum products per SoSoValue, the fund leverages institutional trends but carries market risks typical of crypto derivatives.

Key Takeaways

  • Overnight Opportunity: The ETF captures Bitcoin’s after-hours price action, with backtests showing 222% gains since January 2024 versus daytime losses.
  • Regulated Exposure: Uses 80% in Bitcoin futures and ETFs, plus Treasuries, ensuring compliance without direct crypto custody.
  • Market Context: Amid $92,320 Bitcoin prices and surging ETF inflows like $151.74 million for Bitcoin, this fund aligns with expanding crypto product pipelines.

Conclusion

The Nicholas Bitcoin and Treasuries AfterDark ETF represents a strategic evolution in crypto investing, harnessing the AfterDark ETF‘s overnight Bitcoin price dynamics to offer targeted exposure through secure, regulated channels. As ETF filings proliferate—spurred by favorable policy shifts—and inflows continue, such as the recent $177.64 million into Ethereum products, this fund could broaden access to 24/7 market opportunities. Investors are encouraged to monitor SEC developments closely, positioning themselves for potential innovations in the evolving landscape of digital asset ETFs.

Source: https://en.coinotag.com/proposed-bitcoin-afterdark-etf-seeks-overnight-price-action-during-market-closures

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

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