When using Bitcoin underlying funds, the ETF buys securities at close and sells around open, capturing movement during off-hours periods.
Bitcoin News
Tidal Trust II submitted regulatory paperwork Tuesday proposing an exchange-traded fund that would hold Bitcoin exclusively during non-market hours. The Nicholas Bitcoin and Treasuries AfterDark ETF would purchase exposure at U.S. market close and exit positions shortly after opening.
The SEC filing describes a strategy utilizing Bitcoin futures during overnight hours, closing positions after U.S. markets open each trading day. When using Bitcoin underlying funds, the ETF buys securities at close and sells around open, capturing movement during off-hours periods.
Assets would rotate into U.S. Treasuries, money market funds, and cash equivalents during daytime trading. The approach attempts to harvest potential gains while avoiding intraday volatility through indirect Bitcoin exposure.
ETF analyst Eric Balchunas responded that research shows most Bitcoin gains occur after traditional market hours. He clarified that this does not diminish ETF impact, noting that positioning relates to ETF activity and derivatives based on fund flows.
Balchunas suggested that an after-hours focused product could potentially deliver superior returns by concentrating on overnight price movements. The strategy represents an attempt to isolate a specific pattern in Bitcoin trading behavior.
The Form N-1A registration statement adds two Nicholas Wealth Management products to Tidal Trust II's existing fund lineup. SEC approval is not guaranteed, and the filing remains subject to modification.
Regulators have approved numerous crypto-linked investment vehicles including Bitcoin and Ethereum futures ETFs, spot digital asset ETFs, and staked crypto products. The AfterDark concept introduces a temporal dimension to ETF strategy design.
November marked record outflows for spot Bitcoin ETFs listed on U.S. exchanges, with approximately $4 billion in withdrawals. BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund led redemptions as the two largest products by assets.
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