New Bitcoin ETF Aims to Capitalize on Overnight Trading Patterns
- The Nicholas Bitcoin and Treasuries AfterDark ETF (NYSE: NGHT) launched on April 8, targeting Bitcoin‘s overnight trading patterns.
- NGHT rotates into bitcoin-linked derivatives overnight and reallocates into short-term U.S. Treasuries during the day.
- Morgan Stanley’s ETF, MSBT, offers continuous exposure with a lower fee of just 0.14%, challenging NGHT’s segmented strategy.
- The fund does not invest directly in bitcoin or other digital assets, focusing instead on derivatives.
- Initial trading volume for NGHT was muted but saw an increase on the second day, indicating early interest but not strong conviction.
The Nicholas Bitcoin and Treasuries AfterDark ETF aims to capture returns from international flows during overnight sessions while reducing daytime exposure due to different return and volatility environments. The approach seeks to exploit historical patterns where overnight sessions produce differentiated returns.
Despite its innovative strategy, NGHT faces competition from full-cycle products like Morgan Stanley’s MSBT, which offers similar exposure without requiring active rotation between assets.(Source)
