A new ETF application has been filed in the US for a rather interesting Bitcoin-focused financial product.
New Bitcoin ETF only buys BTC at night
The new ETF, called Bitcoin After Dark, is designed to hold Bitcoin only when U.S. markets are closed, according to Eric Balchunas, senior ETF analyst at Bloomberg. The fund buys Bitcoin when the market closes and sells the Bitcoin to exit the position when the U.S. market opens.
Balchunas pointed out that last year’s analysis found that a significant portion of BTC returns occurred overnight, indicating that such products have the potential to generate higher returns. However, the analyst noted that this does not reduce the impact of the Spot Bitcoin ETF on the market, as some of the overnight volatility is due to the ETF’s positioning, derivative trading, and flow-related dynamics.
Balciunas added that this application is indicative of a larger trend: “The ETF industry is going to try everything imaginable, including the unimaginable. Is that a bit too much? Yes. But that’s how capitalism works, and the process is complex. People need to be free to try new things. That’s how the next big innovation is born.”
*This is not investment advice.
