XFunds Debuts AfterDark Bitcoin ETF as Price Surges
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- XFunds launched the Nicholas Bitcoin and Treasuries AfterDark ETF on the New York Stock Exchange, offering Bitcoin exposure only during after‑hours trading.
- AfterDark ETF allocates to Bitcoin futures, options, and other ETFs around 4:30 p.m. ET and exits the following morning, while holding cash and U.S. Treasuries during the daytime.
- David Nicholas said investor focus on Bitcoin’s opening‑bell performance has “died down a little” and expressed optimism that the new ETF will attract investors.
- Bitcoin rose 5.8% to $72,600 from $68,600 between Tuesday’s market close and Wednesday’s open after a U.S.–Israel ceasefire announcement.
- Tidal Investments partnered with XFunds to file the ETF in December when a perceived intraday selling pattern sparked speculation about a “buy button” issue for U.S. investors.
- Jane Street was mentioned in speculation linking it to a lawsuit that allegedly caused the intraday selling pattern, though experts dismissed that theory.
- AfterDark ETF uses a T‑1 settlement procedure that finalizes accounting before the opening bell, a novel structure compared to the usual T+1 settlement.
Why it matters: Investors gain a tool to lock in overnight Bitcoin price swings while avoiding daytime volatility, while traditional day‑trading strategies lose relevance; the ETF’s T‑1 settlement and cash‑Treasury buffer aim to stabilize returns amid a market where after‑hours moves have become pronounced.
