'Bitcoin Midnight Session' ETF to Launch Soon: A New Investment Strategy Targeting Overnight Yield Disparities

Source: TokenPost Original Title: ‘Bitcoin After Dark’ ETF Launch Announced… Strategy Targets Overnight Return Bias Original Link: New York asset management firm Nicholas Financial plans to launch a new type of spot Bitcoin ETF. This ETF employs an innovative time-differentiated strategy—holding Bitcoin during the overnight period after the official close of US trading, and selling before the market opens at 9:30 AM the next day.

Core ETF Strategy

The ETF operates as follows:

• Holding Period: From 4:00 PM to 9:30 AM Eastern Time
• Primary Asset: Holding Bitcoin during the specified period
• Non-holding Period: Funds are converted into US Treasuries to achieve capital protection and stable returns

ETF analyst Eric Balchunas has dubbed this product “Bitcoin After Dark,” calling it a very unusual and innovative approach.

Strategic Basis

The ETF’s investment logic is based on historical data analysis. Research from 2015 to 2025 shows:

• Bitcoin’s average returns are relatively higher during US after-hours (overnight) trading periods
• This phenomenon, known as “Overnight Bias,” exists in various asset classes such as stocks and forex
• Overnight periods have lower liquidity and overlap with Asian market trading activities, resulting in heightened price sensitivity

Market Significance and Risks

Opportunities:

• The ETF may achieve higher returns than traditional Bitcoin ETFs
• Demonstrates increasing diversification and sophistication in Bitcoin investment strategies
• Offers investors a new risk management tool

Risks:

• While overnight markets offer high returns, they also come with high volatility
• As the Bitcoin market matures, time-period yield differences may narrow
• Past performance does not guarantee future results

Market Outlook

The Bitcoin ETF market is growing rapidly, with product designs becoming more diverse and complex. Nicholas Financial’s product represents a new approach—optimizing the balance between risk and return through precise timing and asset allocation.