A company known as Tidal Trust II recently submitted an application to the Securities and Exchange Commission for an innovative exchange-traded fund designed to offer Bitcoin exposure during off-hours in the U.S. market. This proposed ETF, named the Nicholas Bitcoin and Treasuries AfterDark ETF, plans to balance its holdings between Bitcoin and short-term U.S. Treasuries. By doing so, it aims to capture the overnight performance of Bitcoin for American investors. Unlike traditional spot Bitcoin ETFs that directly hold Bitcoin, this fund intends to mimic Bitcoin's performance using futures contracts, index options, and existing spot Bitcoin ETFs.
Eric Balchunas, a Senior ETF Analyst at Bloomberg Intelligence, noted on social media that historically, the majority of Bitcoin's gains occur outside of regular trading hours. This observation has prompted ETF developers to explore new and varied strategies, as evidenced by the AfterDark ETF concept. Recent trading patterns have shown Bitcoin experiencing sell-offs shortly after the U.S. markets open at 9:30 am ET, prompting discussions regarding these movements among market watchers.
Lark Davis, an entrepreneur and content creator, humorously commented on this phenomenon, questioning whether American investors were restricted from buying. Tidal Financial Group, which specializes in "white label ETF solutions," highlighted the Nicholas Wealth brand in its filing, suggesting a modern approach to investment distinct from traditional methods. The XFunds brand, known for its edgy marketing, emphasizes adaptability to changing markets with slogans like "not your grandpa's bond fund."
Currently, Tidal Financial Group operates an actively-managed ETF under the ticker "BLOX" on the NYSE, which invests in blockchain-related companies, including trading platforms, payment processors, and crypto miners. As of Tuesday, Bitcoin was trading at approximately $92,700, reflecting a 1.6% increase over the previous day, although it had declined by nearly 4% over the past year, according to CoinGecko data.