New ‘AfterDark’ ETF Bets on Bitcoin’s Overnight Gains in SEC Filing

• Tidal Trust II proposes an after hours Bitcoin ETF aiming to track overnight price swings.
• Spot Bitcoin ETFs face sharp outflows while brief December inflows hint at tempering weakness.

Tidal Trust II submitted a new registration document with the US Securities and Exchange Commission on December 9, aiming to launch an ETF focused entirely on Bitcoin’s price movements when US markets are closed. Named the Nicholas Bitcoin and Treasuries AfterDark ETF, this product intends to buy Bitcoin after the US closing bell and sell it at the next day’s opening.

The filing, made through a Form N-1A, outlines how this ETF would engage with Bitcoin Futures or other indirect Bitcoin investment vehicles during overnight hours only. During the day, it would shift holdings into US Treasuries, money market instruments, or cash-like assets to minimize daytime exposure.

According to the filing, 

This pattern is intended to capture the gains that often occur outside traditional trading hours without holding risk through the full day cycle.

Expert Highlights After-Hours Advantage

Eric Balchunas, a senior ETF analyst, pointed out a notable pattern behind the fund’s concept. “We looked at this last year and found most of the gains are in fact after hours,” he said. He added that while various factors affect Bitcoin performance, the ETF could yield stronger results by targeting these periods. Balchunas added, 

The filing itself doesn’t confirm approval by the SEC. It remains pending and may face revisions or delays. As we reported, the regulator has previously approved several Bitcoin-linked investment products, including ETFs focused on both futures and spot markets, as well as staked crypto offerings.

ETF Withdrawals Mirror Bitcoin’s Decline

Investor behavior around spot Bitcoin ETFs has shifted sharply in recent weeks. According to SoSoValue data, November saw net outflows hit $3.48 billion. BlackRock’s iShares Bitcoin ETF saw the largest outflow, totaling about $2.34 billion.

During this period, Bitcoin’s price also dropped sharply. Within a single month, BTC fell by about 17.4%. It turned out to be the weakest month of 2025, which shook market confidence and triggered further selling in December.

While the first week of December brought continued outflows, totaling $87.77 million, there was a temporary shift in sentiment. On December 9, Bitcoin ETFs recorded an inflow of $151.74 million, suggesting that some investors returned after the decline.