Nicholas Financial Corporation, a niche asset management firm specializing in fixed-income and alternative investment strategies, has submitted an application for an innovative Bitcoin exchange-traded fund (ETF) designed to hold the premier cryptocurrency exclusively during nighttime hours.
Eric Balchunas, a prominent ETF analyst, referred to this concept as the “Bitcoin After Dark” product.
The ETF aims to leverage observed trends indicating that a significant portion of Bitcoin’s price appreciation occurs during U.S. market after-hours trading sessions.
The fund operates by acquiring Bitcoin exposure at the close of U.S. markets (4:00 p.m. Eastern Time) and liquidating those positions at market open (9:30 a.m. Eastern Time).
When not invested in Bitcoin overnight, the fund reallocates assets into low-risk U.S. Treasury securities to generate yield while preserving capital.
Balchunas has suggested that this strategy could potentially deliver superior returns compared to traditional approaches.
Is Bitcoin’s performance stronger overnight?
Historical data consistently reveals that Bitcoin (BTC) tends to achieve higher average returns during after-hours periods based on U.S. Eastern Time benchmarks.
This phenomenon has been documented through various studies covering data from 2015 through 2025. The reduced liquidity in U.S. markets at night combined with overlapping Asian trading hours contributes to these dynamics.
Nonetheless, nighttime trading also comes with increased volatility and elevated risk levels; furthermore, as Bitcoin matures, this advantage appears less pronounced than before.
This pattern is not exclusive to cryptocurrencies—similar overnight return biases have been identified within stock and foreign exchange markets as well.