New ETF Proposal Targets Bitcoin’s Overnight Returns as Outflows Hit Record Levels

Tidal Trust II has submitted a Form N-1A to the SEC proposing two new Bitcoin exchange-traded funds (ETFs) under the Nicholas Bitcoin and Treasuries AfterDark ETF umbrella. The primary focus, the AfterDark ETF, aims to capitalize on Bitcoin's overnight return profile by investing in Bitcoin futures, options, and listed US Bitcoin ETFs/ETPs, potentially utilizing a Cayman Islands subsidiary. The strategy involves trading futures or holding underlying fund positions during US overnight hours and closing them near the market open, while holding short-term US Treasuries during the day. This proposal surfaces as spot Bitcoin ETFs experienced record outflows in November ($3.48 billion), coinciding with a 17.4% price drop for BTC that month, and amid analyst concerns about potential price manipulation during US daytime trading hours.

(Source：BeInCrypto)