RIA Nicholas Wealth Management has expanded its exchange-traded fund lineup with a novel product designed to isolate Bitcoin's price movements during overnight hours while mitigating exposure to intraday market volatility. The Nicholas Bitcoin and Treasuries AfterDark ETF (ticker: NGHT), launched through the firm's XFUNDS platform in collaboration with Tidal Investments, is an actively managed fund that rotates between long Bitcoin exposure and short-term U.S. Treasuries and cash equivalents depending on the time of day.
According to a statement from David Nicholas, CEO of XFUNDS by Nicholas Wealth, the fund exploits the fact that Bitcoin trades continuously, 24 hours a day, seven days a week, and that its price behavior is increasingly influenced by global events occurring outside standard U.S. market hours. The ETF does not invest directly in Bitcoin or any other digital asset, nor does it seek direct exposure to the spot or cash price of Bitcoin, the firm clarified.
The launch comes amid a surge in institutional interest in cryptocurrency-related products. Through August 11, 2025, crypto ETFs had attracted $29.4 billion in net inflows, according to data from CFRA. The momentum has been fueled by regulatory breakthroughs, including SEC approval of in-kind creation and redemption mechanisms, as well as the pro-crypto stance of the Trump administration.
This week, Morgan Stanley became the first major U.S. bank to issue a Bitcoin ETF, launching the Morgan Stanley Bitcoin Trust ETP (ticker: MSBT). Amy Oldenburg, the bank's head of digital asset strategy, told Bloomberg that the passive fund recorded its best first day of trading since the bank began its ETF product line. The move follows Morgan Stanley's expansion of cryptocurrency access to its wealth management clients last year.
Meanwhile, the regulatory landscape for digital assets remains complex. The Securities and Exchange Commission recently sought to clarify token taxonomy and jurisdictional boundaries with the Commodity Futures Trading Commission, though advisors continue to grapple with how crypto assets fit under federal securities rules. For advisors navigating this space, the NGHT ETF offers a way to gain Bitcoin exposure without holding the underlying asset directly, potentially simplifying compliance and reporting.
The product also reflects a broader trend of asset managers creating hybrid strategies that blend digital assets with traditional fixed income. By pairing Bitcoin's overnight alpha with the stability of short-term Treasuries, Nicholas Wealth aims to reduce the volatility that has historically deterred some advisors from recommending crypto exposure. The fund's structure may appeal to RIAs and broker-dealer advisors seeking to incorporate Bitcoin into client portfolios while managing risk.
Industry observers note that the success of such products will depend on whether the overnight trading window consistently delivers the alpha that Nicholas Wealth claims. Bitcoin's price movements have historically been influenced by a range of factors, including macroeconomic data releases, geopolitical events, and regulatory announcements, many of which occur during U.S. trading hours. However, the fund's active management approach allows it to adjust allocations dynamically, potentially smoothing returns.
For advisors, the NGHT ETF joins a growing list of options for gaining crypto exposure without direct ownership. As Charles Schwab launches spot Bitcoin and Ethereum trading for retail clients, and as firms like Morgan Stanley deepen their crypto offerings, the competition for advisor wallet share is intensifying. Nicholas Wealth's differentiated strategy may carve out a niche among advisors who want to capture Bitcoin's upside while maintaining a defensive posture during volatile daytime sessions.
