Tidal Trust, in a recent regulatory filing, proposed the trading and listing of an Exchange-Traded Fund that would hold Bitcoin off-market.
Tidal Trust II filed a filing on Tuesday with the US Securities and Exchange Commission. filed Form N-1A to register two Nicholas Wealth Management Bitcoin ETFs.BTCThe existing fund.
These offerings included the Nicholas Bitcoin & Treasuries AfterDark ETF. It would buy BTC at the end of US trading hours and sell it when the market opened, effectively hodling throughout the day.
“When utilizing Bitcoin Futures, the Fund trades these instruments during US overnight hours and closes them out shortly after the US market opens each trading day,” SEC said in its filing. “When utilizing Bitcoin Underlying Funds, the Fund purchases a security at US market close, and then sells the position around US market open, thereby capturing any market movement that occurred during US overnight hours.”
According to the asset management company, ETF assets would be allocated by “US Treasuries, money market funds and other cash equivalents” Daytime hours. This investment strategy allows traders to reduce the volatility of Bitcoin prices by avoiding direct exposure.
“We looked at this last year and found most of the gains are in fact after hours,” said ETF Analyst Eric Balchunas on the response. “Doesn’t mean the ETFs aren’t having impact. Some of this is positioning [because] of the ETFs etc or derivatives based on flows etc etc. But yeah, Bitcoin After Dark ETF could put up better [returns].”
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This filing is not a guarantee of approval and can be changed. Many crypto-related investment vehicles have been approved by the regulator, including Bitcoin (and Ether).ETHThe ETFs are divided into three categories: futures ETFs; spot digital assets ETFs; and staked cryptocurrency ETFs.
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Source: cointelegraph.com
