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    Proposed Bitcoin ‘AfterDark’ ETF Aims to Hold Assets During Trading Hours

    Ethan CarterBy No Comments2 Mins Read
    1765313895

    Tidal Trust has made a new regulatory filing proposing to list and trade an exchange-traded fund designed to hold Bitcoin during off-market hours.

    In a filing to the US Securities and Exchange Commission on Tuesday, Tidal Trust II submitted a Form N-1A registration statement to include two Nicholas Wealth Management ETFs associated with Bitcoin (BTC) in its current fund lineup.

    These offerings, which comprise the Nicholas Bitcoin and Treasuries AfterDark ETF, will only acquire BTC at the start of US market trading hours and sell it at market close, thereby holding through the nighttime.

    “While using Bitcoin Futures, the Fund trades these instruments during US overnight hours and closes them shortly after the US market opens each trading day,” noted the SEC filing. “When using Bitcoin Underlying Funds, the Fund buys a security at US market close and then sells the position around US market open, capturing any market movements that happen during US overnight hours.”

    Investments, SEC, Trading, Bitcoin ETF, ETF
    Tuesday SEC filing for ‘AfterDark’ Bitcoin ETF. Source: SEC

    The asset management firm stated that the ETF would invest its assets in “US Treasuries, money market funds, and other cash equivalents” during daytime hours. This investment strategy aims to help traders evade some of the potential price volatility associated with indirect exposure to Bitcoin.

    “We assessed this last year and discovered that most gains occur after hours,” remarked ETF analyst Eric Balchunas in response to the filing. “This doesn’t imply that the ETFs lack impact. Some of this is positioning due to the ETFs and derivatives based on flows. However, the Bitcoin After Dark ETF might achieve better [returns].”

    Related: Bitcoin’s back above $94K: Is the BTC bull run back on?

    The filing does not assure SEC approval and may be altered. The regulator has previously approved numerous crypto-associated investment vehicles, including Bitcoin and Ether (ETH) futures ETFs, spot digital asset ETFs, and staked crypto ETFs.

    Record outflows from US spot Bitcoin ETFs in November

    US-listed spot Bitcoin ETFs experienced record outflows in November, with approximately $4 billion withdrawn. BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund were at the forefront of these redemptions, being two of the largest ETFs available.