Nicholas Financial Corporation filed paperwork for the Nicholas Bitcoin and Treasuries AfterDark ETF with the SEC. The ETF aims to hold Bitcoin-linked exposure overnight and exit positions before the U.S. market opens. The fund would use regulated financial instruments to gain Bitcoin exposure after U.S. markets close.
The AfterDark ETF would buy Bitcoin-linked instruments after U.S. markets close and sell them shortly after markets reopen. It would not hold Bitcoin directly but use financial instruments like futures, ETPs, and options. During U.S. trading hours, the fund would allocate capital into short-term U.S. Treasuries to reduce intraday volatility.
The filing for the AfterDark ETF relies on instruments that track Bitcoin’s price without requiring direct custody of the asset. Bitcoin futures, ETPs, and options allow investors to gain exposure to Bitcoin without owning it. Historical data suggests that Bitcoin performs better outside U.S. market hours, with gains concentrated during off-hours trading.
The filing follows market research indicating that Bitcoin’s gains are concentrated during off-hours trading. CNBC reported that buying IBIT shares at the U.S. market close and selling them the next day’s open yielded a 222% gain since January 2024. Bloomberg ETF analyst Eric Balchunas noted that Bitcoin tends to perform better outside U.S. market hours.
Data from Farside Investors shows U.S. spot Bitcoin ETFs have seen $57.9 billion in net inflows, with IBIT leading with over $62 billion. Fidelity’s FBTC follows with $12 billion, while Grayscale’s GBTC records sizable outflows. Bitcoin traded around $85,902 with a global market cap of $3.02 trillion and $129.46 billion in 24-hour volume. 1. The CDC reports a surge in COVID-19 cases, with the Delta variant causing increased hospitalizations. Vaccination rates remain low in certain areas, leading to concerns about further spread of the virus.
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Read more at Yahoo Finance: Wall Street firm files new Bitcoin ETF that trades only after dark