An institution has applied for a "Bitcoin Only Held at Night" ETF, with all assets moved to Treasury bonds during the day.

[Chain News] Another institution is getting creative with Bitcoin ETFs.

A boutique wealth management firm called Nicholas Financial recently submitted an interesting application to the SEC—they want to launch a Bitcoin ETF that only holds Bitcoin at night. Yes, you read that right: it’s specifically designed to avoid U.S. trading hours.

The logic behind this fund, ticker NGTH, is simple: buy Bitcoin at 4:00 PM ET when the U.S. stock market closes, and sell it before 9:30 AM the next morning, right before the market opens. What happens during the day? The funds sit in short-term U.S. Treasuries earning interest.

In short, it only profits from Bitcoin’s overnight volatility and hides in Treasuries during the day as a safe haven. This approach seems tailor-made for investors who “find Bitcoin too exciting during the day and believe the real action happens at night.”

They also submitted a second product application, ticker BHGD, called the Nicholas Bitcoin Tail ETF. If the SEC approves, there will be two more players in the Bitcoin ETF space taking advantage of time arbitrage.

That said, making trading hours the core strategy—now that’s some out-of-the-box thinking.