Bitcoin ETF: New ETF Aims to Capture Overnight Bitcoin Gains
- Nicholas Wealth files for a Bitcoin and Treasuries AfterDark ETF aiming to capture overnight Bitcoin gains.
- Analysis suggests inconsistent outperformance, raising questions about the proposed ETF’s long-term success.
- ETF landscape continues to innovate, blurring lines with mutual funds and expanding into digital assets.
Shockingly, over 1,000 new ETFs launched in 2025 alone, showcasing an unprecedented level of innovation in the investment world. Among these, a particularly intriguing development has emerged: a proposed exchange-traded fund designed to capitalize on Bitcoin’s performance during U.S. trading off hours. This article dives into the details of this proposed ETF, analyzing its potential, its challenges, and what it signifies for the future of ETF investing. We’ll explore whether this nicholas bitcoin and treasuries afterdark etf can deliver consistent returns or if it’s merely a fleeting trend.
The Proposed ETF: Nicholas Bitcoin and Treasuries AfterDark
Nicholas Wealth has filed for a new fund, a proposed etf named Bitcoin and Treasuries AfterDark. This proposed exchange-traded fund, with the ticker “NGHT” approval and launch expected next year, aims to capture the performance of the world’s largest cryptocurrency while U.S. stock markets are closed. The belief that bitcoin’s performance is better than u.s during evening hours is central to its strategy. David Nicholas, president and founder of Nicholas Wealth, believes this new etf, will outperform, especially during bull markets for bitcoin. For investors who have been unhappy with Bitcoin’s recent performance, such an actively-managed strategy may be appealing.
Analyzing Bitcoin’s Performance: Trading Hours vs. U.S.’s Off Hours
The core premise of the nicholas bitcoin and treasuries afterdark relies on the idea that Bitcoin performs better during non-U.S. trading hours. Some research supports this, but its long-term consistency is questionable. An analysis of five-minute bitcoin price data from January 2018 to December 2023 indicated that average overnight returns were better than u.s trading hour returns. This structural regime shift suggests higher buying activity overseas during u.s.’s off hours. However, other analysts suggest this may just be noise, with Greg Magadini, Director of Derivatives at Bloomberg, stating that there shouldn’t be any reason for it to outperform or underperform consistently.
Key Data Comparison
| Metric | 2018-2023 (Overnight) | 2018-2023 (U.S. Trading Hours) | 2024 (US AUM) |
|---|---|---|---|
| Average Returns | 0.093% | -0.029% | $118 Billion |
| ETF Launches (2025) | N/A | N/A | 1,036 |
Bitcoin and Treasuries AfterDark ETF Aims and Potential Drawbacks
The bitcoin and treasuries afterdark etf aims to capture the performance by investing when the U.S. stock market is closed. The fund invests in bitcoin futures contracts, which can be subject to market volatility. The fund’s investment objective is total return. As an actively-managed fund, the portfolio manager has discretion in making investment decisions and selecting the underlying assets. Shares may trade at a premium or discount to the net asset value. Investing involves risk, including the potential loss of principal. Shares of etfs are bought and sold at market price (worth more or less) and are not individually redeemable directly with the fund. Unlike mutual funds, etfs are bought and sold throughout the day. The ETF shares may trade at a premium or discount to their net assets. Additional risks can be found in the fund’s prospectus.
The Evolving ETF Landscape: Active ETFs and Digital Assets
The ETF landscape is constantly evolving, with new products and strategies emerging regularly. The blurring lines between ETFs and mutual funds, particularly through share class changes, is a notable trend. The rise of active etfs is another significant development. There’s increased adoption of active ETFs, with assets under management growing substantially in 2024. Digital assets are also playing a more prominent role, with the launch of spot Bitcoin and Ethereum ETFs. The introduction of these assets has the potential to change how many investors approach the digital asset class. The ongoing expansion of digital assets and active strategies is reshaping how investors approach portfolio construction and asset allocation, as they seek to use ways to invest in these spaces.
Competition and Market Dynamics: Popular ETFs
The ETF market is becoming increasingly competitive, with more asset management firms entering the space. As the number of securities increases and options multiply, investors are actively seeking ways to navigate the complexities. Popular ETFs like VOO, IVV, and SCHD continue to attract significant investment. These ETFs offer diversified exposure at low costs, making them attractive options for both retail and institutional investors. However, with the growing number of active etfs, investors are faced with more choices and the need for careful evaluation to determine which funds best align with their investment objectives.
Deep Dive: Market Analysis
While specific price points for the proposed ETF are unavailable, the overall market sentiment towards Bitcoin remains cautiously optimistic. Bitcoin’s trading volume can see significant shifts based on regulatory news and macroeconomic indicators. Analyst sentiment is divided, with some pointing to the potential for overnight outperformance and others questioning its consistency. The actively-managed nature and limited historical data add uncertainty. For example, if the stock market is down, and Bitcoin volume is up, this can show how investors are hedging their portfolios. The price and net asset value may be higher or lower. Shares of etfs are bought and sold at market. Distributed by foreside fund services. Investing involves risk.
Frequently Asked Questions
Which ETF does Warren Buffett suggest?
Warren Buffett has often recommended low-cost S&P 500 index funds, such as VOO, as a core holding for most investors.
What ETF will boom in 2026?
Predicting the exact ETF to boom in 2026 is speculative, but given current trends, ETFs focused on emerging technologies like AI, and those providing access to alternative assets like private credit, may experience significant growth.
What is an ETF for idiots?
An ETF is like a basket holding many different stocks or bonds. Instead of buying each one separately, you buy one ‘share’ of the basket, giving you instant diversification. Shares of etfs are bought, and shares of etfs are sold.
Why does Dave Ramsey say not to invest in ETFs?
Dave Ramsey typically advises against investing in anything other than well-diversified mutual funds with a long track record of success, and actively managed by a proven investment team. He often cites the potential for hidden fees and the complexity of some ETFs as reasons for his stance.
Conclusion
The proposed Bitcoin and Treasuries AfterDark ETF represents an interesting, albeit speculative, development in the ETF world. While the potential for overnight outperformance exists, investors should carefully weigh the risks and consider the inconsistent nature of Bitcoin’s trading patterns. The approval and launch of the new fund from Nicholas Wealth are expected next year. As the ETF market continues to evolve, investors must stay informed, conduct thorough research, and align their investment decisions with their individual risk tolerance and financial goals. Whether investors who have been unhappy will flock to it remains to be seen.
