New ETF Aims to Capture Bitcoin’s After-Hours Gains Without Holding BTC

A company called Tidal Trust II has applied to launch an ETF that gives Bitcoin (BTC) exposure only when US markets are closed. 

It would be called the Nicholas Bitcoin and Treasuries AfterDark ETF. The idea is simple: during the trading day, the fund would hold short-term US Treasuries and, after hours, it would shift its exposure so that its returns line up with Bitcoin’s overnight performance.

Read more: Ripple’s US$500M Raise Attracts Wall Street Giants With Deal Offering Built-In Downside Protection

But the fund would not hold actual Bitcoin. Instead, it would try to match Bitcoin’s moves using futures, index options, and even positions in existing spot Bitcoin ETFs. This structure follows the idea, highlighted by analysts, that much of Bitcoin’s historical upside has happened outside regular U.S. trading hours. 

For example, Bloomberg’s Eric Balchunas pointed out that the filing shows how far ETF issuers are willing to go to offer new variations of Bitcoin-linked products.

Bitcoin Turns Bearish In US After Hours, For Some Reason

Recent price action has also fed interest in this theme. Bitcoin has often sold off around the 9:30 a.m. ET market open, prompting people on X to question why US hours seem to lean bearish. 

Comments from crypto figures like Lark Davis have reflected that sentiment. “Bitcoin dumping once again after the New York open. Did someone disable the buy button for Americans?” he said.

Tidal Financial Group markets itself as a provider of white-label ETF products, and the filing features branding from “XFunds by Nicholas Wealth,” which presents its funds with humorous, old-Wall-Street imagery.

Related: Vanguard Opens Crypto ETF Trading to 50 Million Clients

At the time of writing, Bitcoin traded around US$92,700, up 1.6% on the day but down nearly 4% over the past year, according to data from CoinGecko.

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