Tired US-based bitcoin bulls may think it’s their imagination that they seem to wake up every morning to BTC doing pretty well, only for prices to drop during the US trading session.
They don’t actually imagine things.
Data from crypto analytics platform Velo.xyz shows that over the past year, bitcoin is more likely to be in the green when traditional US markets are closed and in the red when they are open.
Bloomberg’s Eric Balchunas said the data on outperformance after US hours was also similar for 2024 and suggests that the position of spot ETFs or derivatives may have an impact.
To take advantage, Nicholas Financial Corporation, a boutique wealth management firm, has filed with the US Securities and Exchange Commission (SEC) to launch a bitcoin ETF that only holds the asset overnight, opting out of the US trading day entirely.
The fund, called the Nicholas Bitcoin and Treasuries AfterDark ETF (NGTH), would buy bitcoin at 4 p.m. ET — when U.S. markets close — and sell at 9:30 a.m. ET the following day, before markets reopen. During the day, the fund will rotate to short-term US Treasuries to preserve capital and generate returns.
The firm also filed paperwork for another product, the Nicholas Bitcoin Tail ETF (BHGD).
If approved, the ETF will add a new twist to the growing ecosystem of bitcoin investment products by treating the time of day as a key factor in its strategy.
