Night owl bitcoin traders: Soon there'll be an ETF just for you

A newly introduced exchange-traded fund (ETF) promises to cater to night traders seeking exposure to Bitcoin, mirroring the popularity of existing ETFs linked to the world's foremost cryptocurrency. However, this fund comes with a unique twist: it aims to engage in trading Bitcoin-related assets while the traditional U.S. markets are closed. Named the Nicholas Bitcoin and Treasuries AfterDark ETF, the fund intends to acquire Bitcoin-linked financial instruments after the close of U.S. financial markets and liquidate these positions shortly after trading resumes the following day. According to a filing submitted to the Securities and Exchange Commission on December 9, the ETF will not directly hold Bitcoin. Instead, it plans to allocate at least 80% of its assets toward trading Bitcoin futures contracts, Bitcoin exchange-traded products (ETPs), and options associated with those ETPs. This innovative offering seeks to leverage Bitcoin's notable gains during off-hours trading. For instance, an investor who purchased shares of the iShares Bitcoin Trust ETF (IBIT) at market close and sold them the next morning would have realized an impressive 222% return since January 2024, as reported by wealth management firm Bespoke Investment Group. In contrast, those who bought IBIT shares at market open and sold them at close would have faced a significant loss of 40.5% over the same period. As of the latest trading session, Bitcoin is valued at $92,320, reflecting a nearly 1% decline on the day. The leading cryptocurrency has seen a decrease of approximately 12% over the past month and remains relatively unchanged since the start of the year. The introduction of this ETF highlights the competitive landscape among sponsors looking to launch various cryptocurrency-tracking ETFs. This competition has intensified in recent months, particularly under the administration of President Donald Trump, who has encouraged the SEC and Commodity Futures Trading Commission to adopt a more lenient approach towards token issuers and digital asset exchanges. Since the approval of Bitcoin ETFs in January 2024, more than 30 have commenced trading in the U.S., as detailed by ETF.com.