U.S.-based bitcoin investors may feel it’s just a trick of the mind that they consistently notice BTC performing well each morning, only to see a dip during U.S. trading hours.
But they are not mistaken.
According to data from crypto analytics platform Velo.xyz, bitcoin tends to show gains when U.S. markets are closed, and losses when they are open.
Eric Balchunas from Bloomberg noted that the trend of better performance post-U.S. trading hours appears consistent for 2024 as well, and hints that spot ETFs or derivatives might influence this behavior.
In an effort to capitalize on this trend, Nicholas Financial Corporation, a boutique wealth management firm, has submitted a filing with the U.S. Securities and Exchange Commission (SEC) aiming to establish a bitcoin ETF that only holds the asset during overnight hours, avoiding the entire U.S. trading day.
The proposed fund, named the Nicholas Bitcoin and Treasuries AfterDark ETF (NGTH), would acquire bitcoin at 4 p.m. ET—when U.S. markets close—and liquidate by 9:30 a.m. ET the next day, ahead of market reopening. During the trading hours, the fund would allocate to short-term U.S. Treasuries to safeguard capital and earn yield.
Additionally, the firm has also filed for a second product, the Nicholas Bitcoin Tail ETF (BHGD).
Should it receive approval, the ETF would introduce a unique approach to the expanding landscape of bitcoin investment options by emphasizing time of day in its strategy.
