Tidal Trust Files for Overnight Bitcoin ETF

Tidal Trust II has filed a proposal with the U.S. Securities and Exchange Commission to launch a Bitcoin exchange-traded fund designed to capture the cryptocurrency's returns during overnight hours when U.S. markets are closed. The filing, submitted on Tuesday, introduces the Nicholas Bitcoin and Treasuries AfterDark ETF, along with the Nicholas Bitcoin Tail ETF, as additions to the firm's existing funds. This approach marks a shift toward specialized timing strategies in the Bitcoin ETF space, amid recent challenges for spot Bitcoin funds.

The proposed AfterDark ETF will not hold Bitcoin directly. Instead, it plans to gain exposure through Bitcoin futures, options, and U.S.-listed Bitcoin exchange-traded products or funds. According to the registration statement, the fund would enter positions near the close of regular U.S. trading hours, typically around 4 p.m. Eastern Time, and unwind them shortly after the market opens the next day. During U.S. trading hours, the ETF would invest in short-term U.S. Treasury securities, money market funds, and cash equivalents to maintain liquidity. This daily rotation aims to isolate Bitcoin's performance during non-U.S. hours, a period...