New Bitcoin ETF Bets on Nighttime Trading

Nicholas Financial Corporation, a boutique asset manager known for specialized fixed-income and alternative strategies, has filed for a novel Bitcoin exchange-traded fund (ETF) that will only hold the leading cryptocurrency at night.

Eric Balchunas, the leading ETF analyst, described it as a “Bitcoin After Dark” product.

It seeks to capitalize on some patterns showing that a disproportionate share of the flagship cryptocurrency’s price gains occur during U.S. market “after-hours”.

The fund’s core mechanic involves buying Bitcoin exposure at the U.S. market close (4:00 p.m. ET) and selling it at the open (9:30 a.m. ET).

During non-exposure periods, it rotates into low-risk U.S. Treasuries for yield and capital preservation.

Balchunas has predicted that the ETF might end up putting up better returns.

Does Bitcoin outperform at night?

Empirical data consistently show that Bitcoin (BTC) has historically generated stronger average returns during after-hours periods (relative to U.S. Eastern Time).

This pattern has been observed across multiple studies and datasets spanning 2015–2025. During nighttime in the U.S., market liquidity tends to be thinner. Asian trading activity also overlaps with U.S. night hours.

However, nighttime periods also exhibit higher volatility and risk. Moreover, the edge has narrowed since Bitcoin’s maturation.

This is not unique to Bitcoin. Similar overnight biases appear in stocks and forex.