A novel ETF proposal has recently been submitted in the United States, featuring a unique approach centered on Bitcoin.
Introducing a Bitcoin ETF That Operates Exclusively During Night Hours
Bloomberg’s lead ETF analyst, Eric Balchunas, revealed that this innovative fund, named “Bitcoin After Dark,” plans to hold Bitcoin solely when U.S. stock exchanges are closed. The strategy involves purchasing Bitcoin at the market’s closing bell and liquidating those holdings once the markets reopen.
Balchunas highlighted findings from last year showing that a considerable share of Bitcoin’s gains happen overnight. This insight suggests that such an ETF could potentially capitalize on higher returns by focusing on after-hours trading periods. Nonetheless, he emphasized that this concept does not lessen the significance of spot Bitcoin ETFs since overnight price swings often result from factors like ETF positioning, derivative trades, and transaction flows.
The analyst further commented that this filing exemplifies a broader pattern within the ETF sector: “The industry is willing to experiment with every conceivable idea — even those beyond imagination. Is it excessive? Perhaps. Yet capitalism thrives on complexity and freedom to innovate. Allowing these experiments paves the way for future breakthroughs.”
Please note: This content is for informational purposes only and should not be considered investment advice.