Tidal Trust Files for “AfterDark” Bitcoin ETF Designed to Trade Only When Markets Are Closed

Tidal Trust has introduced one of the crypto ETF industry’s most unconventional proposals to date: an AfterDark Bitcoin ETF designed to purchase Bitcoin exclusively during U.S. after-hours trading and close positions when markets reopen. The firm submitted a Form N-1A filing to the U.S. Securities and Exchange Commission (SEC) earlier this week, revealing plans to expand the Tidal Trust II fund structure with a new Bitcoin-linked product managed by Nicholas Wealth Management.

The ETF, named the Nicholas Bitcoin and Treasuries AfterDark ETF, follows a strategy aimed at capturing Bitcoin’s historically significant overnight price movements while avoiding daytime volatility. According to the filing:

“When using Bitcoin Futures, the Fund will buy and sell these instruments during U.S. overnight hours and close positions shortly after the market opens. When using Bitcoin Spot Funds, the Fund will purchase at U.S. market close and sell near the next opening.”

In practical terms, the ETF would only hold Bitcoin exposure overnight. During regular market hours, capital would be reallocated into U.S. Treasury securities, money market funds, and cash equivalents — enabling a lower-risk posture while still benefiting from BTC price action after hours.

Crypto ETF analyst Eric Balchunas commented on the filing, noting that the idea may not be as unusual as it seems:

“We looked at this last year and found that most of Bitcoin’s gains actually occurred while U.S. markets were closed.”

Balchunas clarified that this doesn’t mean ETFs are ineffective, but that derivatives positioning and flow dynamics can cause Bitcoin’s after-hours movements to outperform daytime trading.

Although the filing has garnered significant attention, there is no guarantee of SEC approval. The agency continues to assess applications involving Bitcoin futures, spot digital asset ETFs, and staked crypto products — many of which have faced long regulatory timelines.

Market context adds another layer to the story. In November, U.S.-listed spot Bitcoin ETFs experienced a record $4 billion in outflows, with BlackRock's iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund leading redemptions. This sharp reversal in investor sentiment comes after periods of heavy inflows earlier in the year.

The AfterDark ETF could represent a new wave of innovation in the Bitcoin ETF landscape — shifting the focus from continuous exposure to time-specific trading strategies tailored to BTC’s unique market behavior. If approved, it may open the door for additional ETFs optimized around intraday or after-hours performance windows.

For now, the industry awaits SEC feedback as Tidal Trust positions itself at the forefront of experimental crypto-linked financial products.