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

    Ethan CarterBy No Comments2 Mins Read
    Proposed Bitcoin ‘AfterDark’ ETF Aims to Hold Assets During Trading Hours

    Tidal Trust has recently filed a new regulatory proposal to list and trade an exchange-traded fund that will hold Bitcoin during off-market hours.

    In a filing with 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 related to Bitcoin (BTC) in its existing portfolio.

    The proposed offerings, namely the Nicholas Bitcoin and Treasuries AfterDark ETF, will purchase BTC only after US market trading hours conclude and will sell it at market opening, effectively holding it throughout the day.

    “By utilizing Bitcoin Futures, the Fund trades these instruments during US overnight hours and closes them soon after the US market opens each trading day,” stated the SEC filing. “When utilizing Bitcoin Underlying Funds, the Fund buys a security at US market close and subsequently sells the position around US market open, thereby capitalizing on any market movement that occurs during US overnight hours.”

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

    The asset management firm indicated that the ETF would allocate its resources to “US Treasuries, money market funds, and other cash equivalents” during the daytime. This investment strategy would effectively mitigate some of the potential price volatility associated with indirect Bitcoin exposure.

    “We examined this last year and found that most of the gains actually occur after hours,” remarked ETF analyst Eric Balchunas in response to the filing. “That doesn’t imply the ETFs lack impact. Some of this is positioning [because] of the ETFs, etc., or derivatives based on flows. But yes, the Bitcoin After Dark ETF could potentially yield 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 subject to revisions. The regulator has approved various crypto-related 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

    Spot Bitcoin ETFs on US exchanges experienced record outflows in November, with approximately $4 billion withdrawn. BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund led the redemptions as two of the market’s largest ETFs.