New ‘Bitcoin After Dark’ ETF Aims for Overnight BTC Trades

Tidal Trust files for Bitcoin AfterDark ETF, aiming to capture Bitcoin’s overnight gains during U.S. non-trading hours.

Tidal Trust has filed for approval of a new Bitcoin ETF called “Bitcoin AfterDark.” This fund targets Bitcoin price movements that occur outside of U.S. market hours.

The idea is to hold Bitcoin only during the overnight period, aiming to take advantage of market fluctuations during off-hours.

Structure of the Bitcoin AfterDark ETF

The Bitcoin AfterDark ETF will purchase Bitcoin after U.S. market hours and sell it the next morning. The fund will hold Bitcoin overnight and focus on capturing price changes that happen when U.S. markets are closed.

During the day, the fund will switch to safer investments, such as U.S. Treasuries and money-market funds.

This strategy minimizes risk during the day while targeting the overnight price movements of Bitcoin.

The idea is to balance exposure to Bitcoin with more stable, low-risk assets during regular trading hours. As the fund focuses on nighttime trading, it hopes to tap into Bitcoin’s volatile but often profitable off-hour performance.

Historical Gains Outside U.S. Market Hours

Bitcoin has historically seen significant price movements outside of U.S. market hours, according to data from Eric Balchunas.

He pointed out that many of Bitcoin strongest gains happen when U.S. markets are closed. As a result, the Bitcoin AfterDark ETF could perform better than traditional Bitcoin ETFs, which trade throughout the day.

This overnight price movement could be linked to global trading patterns and investor behavior in different time zones. Balchunas also noted that derivatives and existing Bitcoin ETFs might contribute to this trend.

By focusing on this period, the Bitcoin AfterDark ETF aims to capture the gains that are often missed by other funds.

Related Reading: Strategy Confirms Latest Buy Of 10,624 BTC for $962 Million

SEC’s Growing Acceptance of Crypto ETFs

Tidal Trust’s filing for the Bitcoin AfterDark ETF comes at a time when the SEC is becoming more open to crypto-related ETFs.

In September, REX Shares launched the first Ethereum Staking ETF, offering exposure to Ethereum with staking rewards. Similarly, BlackRock recently filed for a Staked Ethereum ETF, showing continued interest in crypto-based investment products.

The SEC’s increasing acceptance of crypto ETFs is significant for the future of Bitcoin investment vehicles. This trend signals that more crypto-focused funds may receive approval in the coming months.

If the Bitcoin AfterDark ETF is approved, it could become one of the first to focus exclusively on Bitcoin’s overnight performance.

Bitcoin AfterDark ETF seeks to capture Bitcoin’s potential gains during U.S. off-hours. By focusing on overnight movements, it hopes to offer an innovative way to invest in Bitcoin. If approved, this fund could provide an exciting new option for crypto investors.

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