A newly proposed exchange-traded fund would offer exposure to bitcoin, much like other popular ETFs tracking the world's oldest cryptocurrency. But, there's a twist: The fund would trade bitcoin-linked assets while Wall Street sleeps. The Nicholas Bitcoin and Treasuries AfterDark ETF aims to purchase bitcoin-linked financial instruments after the U.S. financial markets close, and exit those positions shortly after the U.S. market re-opens each day, according to a December 9 filing to the Securities and Exchange Commission. The fund would not hold bitcoin directly. Instead, the AfterDark ETF would use at least 80% of the value of its assets to trade bitcoin futures contracts, bitcoin exchange-traded products and ETFs, and options on those ETFs and ETPs. The offering would capitalize on bitcoin's outsized gains in off-hours trading. Hypothetically, an investor who had been buying shares of the iShares Bitcoin Trust ETF (IBIT) when U.S. markets formally close, and selling them at the next day's open, would have scored a 222% gain since January 2024, data from wealth manager Bespoke Investment Group shows. But an investor that had bought IBIT shares at the open and sold them at the close would have lost 40.5% in the same time. Bitcoin was last trading at $92,320, down nearly 1% on the day. The leading cryptocurrency is down about 12% over the past month and little changed since the beginning of the year. The proposed ETF underscores jockeying among sponsors to launch ETFs tracking all kinds of cryptocurrencies, from altcoins like Aptos and Sui to memecoins such as Bonk and Dogecoin. The contest has only accelerated under President Donald Trump, who has pushed the SEC and Commodity Futures Trading Commission to soften their stances on token issuers and digital asset exchanges. Since being approved under the prior administration in January 2024, more than 30 bitcoin ETFs have begun trading in the U.S., according to data from ETF.com.
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Night owl bitcoin traders: Soon there'll be an ETF just for you
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