Bitcoin’s Midnight Gambit: ETFs Strike at the SEC! 🌙💸

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Two unconventional phantoms of the financial realm approached the U.S. Securities and Exchange Commission on December 9, 2025, their arrival as peculiar as a whisper in a cathedral, stirring even the most jaded observers.

Bitcoin ETFs Get Weird: Night-Trading and Tail-Risk Designs Filed With SEC 🦉

On Tuesday, Nicholas Wealth, LLC, in partnership with Tidal Investments LLC, filed two bitcoin-linked ETFs with the SEC – a pair of products that combine quant-heavy engineering with the unmistakable energy of “crypto meets late-night television.” One fund plays bitcoin’s after-hours tendencies like a nocturnal DJ set, while the other is designed to dampen the blow when bitcoin’s volatility decides to reenact a roller coaster. 🎢

Bloomberg Senior ETF Analyst Eric Balchunas wasted no time framing the moment with his signature blend of ETF clarity. “ BITCOIN AFTER DARK: new filing for an ETF that will only hold bitcoin at night, buying it when the US market closes and selling it when it opens,” he wrote, noting that historical data indeed shows stronger returns when traditional markets are asleep. “Doesn’t mean the ETFs aren’t having impact… But yeah, bitcoin After Dark ETF could put up better returns, we’ll see tho,” he added. 🧠

The first product – the Nicholas Bitcoin and Treasuries AfterDark ETF (ticker: NGHT) – attempts to harvest bitcoin’s so-called overnight alpha. The fund takes long bitcoin exposure only after the U.S. market closes, then pivots into Treasuries and cash equivalents during the day. No direct bitcoin holdings, no 24/7 price swings, just a disciplined regime of “moonlight bitcoin” and “daytime sobriety.” 🌙

According to the prospectus, NGHT uses U.S.-listed bitcoin futures, bitcoin ETPs, and options to build its nightly stance while relying on short-term Treasuries for daylight ballast. Portfolio turnover is expected to be high enough to qualify as a cardio workout, and up to 25% of assets may run through a Cayman Islands subsidiary for derivatives flexibility. 💪

The logic behind the strategy isn’t baseless. Research consistently shows bitcoin’s gains clustering in after-hours sessions, with daytime trading often flattening or giving back those moves. Empirical work cited in Nicholas’ filing places average overnight returns near 0.093%, compared with -0.029% during U.S. trading hours. It’s the kind of structural quirk that ETF engineers love to bottle. 🧪

But as Balchunas reminded his X followers, the ETF world has entered its “let’s-try-everything” era. “Bigger takeaway here is the ETF industry is going to try everything you can poss imagine and some things you can’t imagine. Is it a bit much? Yeah. But that’s how capitalism works… People gotta be free to try stuff. That’s how you get the next big thing.” 🚀

The sibling fund, the Nicholas Bitcoin Tail ETF (ticker: BHDG), is anything but nocturnal. This one is a hedge-first, returns-second strategy built for the investor who wants exposure to bitcoin’s upside but would also like to sleep at night without clutching a bottle of melatonin. 🛏️

BHDG uses long puts on bitcoin ETFs or indices to shield investors during sharp drawdowns while financing those hedges with sold calls or call spreads. In plain terms: if bitcoin falls off a cliff, BHDG’s structure is designed to go up; if bitcoin stays flat, the puts decay; and if bitcoin pumps, the call spreads can sting. It’s an options-driven ballet with Treasuries and money-market funds serving as steady collateral. 💃

Neither ETF touches spot bitcoin directly like funds such as IBIT or GBTC – a design choice that keeps the strategies within established regulatory parameters while allowing managers to lean heavily on derivatives. The SEC will review the filings over the next several months, with both funds expected to debut in 2026 if approved. 🕛

Risk sections in the filings read like a crash course in crypto reality: volatility, forks, leverage dynamics, liquidity gaps, counterparty exposure, tax rules, and the ever-present specter of bitcoin’s round-the-clock trading cycle overwhelming traditional fund structures. But for adventurous investors, these ETFs represent a structured approach to navigating bitcoin’s market quirks rather than a free-for-all. 🧩

As ETF issuers increasingly experiment with crypto-adjacent thematic plays, filings like NGHT and BHDG signal a new era: not just “ bitcoin in an ETF,” but “ bitcoin sliced into time-windows and risk-profiles.” Whether these concepts attract meaningful assets will depend on performance, market conditions, and investor appetite for specialization. 🤔

For now, though, it’s fair to say the ETF industry is having fun – and filing paperwork at a pace that suggests caffeine futures might be the next hot commodity. ☕

FAQ 🦉

  • What did Nicholas Wealth file with the SEC on Dec. 9, 2025?
    Two Bitcoin-related ETFs – one focused on overnight trading and one designed for tail-risk hedging. 📜
  • What makes the ‘AfterDark’ ETF unique?
    It holds Bitcoin exposure only during U.S. after-hours sessions. 🌙
  • How does the tail-risk ETF work?
    It uses long puts and financed call spreads to protect against steep Bitcoin sell-offs. ⚖️
  • When could these ETFs launch?
    Both funds are expected to debut in 2026 pending SEC approval. 🕒

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2025-12-10 00:44