Nicholas Financial Proposes AfterDark Bitcoin ETF Skipping U.S. Trading Hours
Nicholas Financial Corporation has filed with the SEC to launch a bitcoin ETF called the Nicholas Bitcoin and Treasuries AfterDark ETF (NGTH), which would hold Bitcoin only during overnight hours. The fund aims to buy Bitcoin at 4 p.m. ET after U.S. markets close and sell by 9:30 a.m. ET the next day, rotating into short-term U.S. Treasuries during daytime trading hours.
The firm also submitted paperwork for a second product, the Nicholas Bitcoin Tail ETF (BHGD). This approach treats the time of day as a key factor in Bitcoin investing, potentially offering a new strategy for bitcoin investment products by skipping U.S. trading hours if approved.
Data from Velo.xyz indicates that Bitcoin tends to have positive returns when traditional U.S. markets are closed and negative returns when they are open. Bloomberg’s Eric Balchunas noted similar patterns for 2024, suggesting that spot ETFs or derivatives positioning could influence these trends.
The proposal is currently subject to regulatory approval by the SEC.
