Bullish for BTC as Bitcoin AfterDark ETFs Provide Overnight Edge to US Citizens

Nicholas Financial Corporation has submitted a request to SEC to introduce a new Bitcoin AfterDark ETF. The fund is meant to capture the opportunity presented by the stronger performance of Bitcoin outside of the U.S. trading hours. It will keep Bitcoin overnight and roll into U.S. Treasuries during the day when the U.S. markets are open in the hope that it may gain more on the days that the U.S. markets are closed.

Bitcoin’s Stronger Performance During Non-U.S. Trading Hours 

The crypto analytics company, Velo.xyz, records that BTC has been steadily increasing when the U.S. markets are not open. The data indicate more positive trends in the direction of the increase during overnight and poor performance during the normal U.S. trading hours. This is the trend that was observed most of the year 2024 leading to the development of the Bitcoin AfterDark ETF. 

The AfterDark ETF Strategy: How It Works?

The ETF buys Bitcoin at the end of the U. S. equity markets at 4 p.m. Eastern time and sells it at 9:30 a.m. the following day, before the market opens. It holds short-term U.S. Treasuries between 9.30 a.m. and 4 p.m. In comparison with the usual spot Bitcoin ETFs that hold Bitcoin at all times, the strategy will lower the exposure to Bitcoin in periods when the U.S. economic events may lead to extreme volatility and change the market mood.

Why Bitcoin Performs Differently in U.S. and Non-U.S. Hours? 

According to market analysts, Bitcoin is influenced to act in different ways in the U.S. market hours due to several factors. Spot Bitcoin ETFs typically trade and re-price at the close of the U.S. equity markets, by linking the movement of Bitcoin to the traditional risk sentiment. During the day, institutional investors are also hedging Bitcoin using futures, which may limit profits or even increase losses. The Bitcoin AfterDark ETF attempts to avoid these risks by obtaining the performance of BTC, through global off-hours.

Final Thoughts: The Future of Bitcoin ETFs

The Bitcoin AfterDark ETF is one of the emerging Bitcoin ETFs that provides an alternative method to track the price dynamics of BTC. It attempts to differentiate itself in a market that is becoming flooded with spot and futures funds as the ETF market matures. Regulatory concerns exist, although this ETF does not introduce additional risks to Bitcoin ETFs. Bitcoin AfterDark ETF may provide investors with a customized exposure to the unique performance of Bitcoin as it becomes further integrated into the traditional market.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.