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A new Bitcoin (CRYPTO: $BTC ) exchange-traded fund (ETF) proposes to operate outside U.S. trading hours.

Nicholas Financial Corp., a boutique wealth management firm, has filed with the U.S. regulators to launch a Bitcoin ETF that holds the asset only during overnight hours, opting out of the U.S. trading day.

This is possible because cryptocurrencies trade around the clock, seven days a week, 24 hours per day.

The fund, called the "Nicholas Bitcoin and Treasuries AfterDark ETF (NGTH)," would buy Bitcoin at 4 p.m. Eastern time when U.S. markets close and sell by 9:30 a.m. the next day before markets reopen.

During daytime hours, the fund would rotate into short-term U.S. Treasuries to preserve capital and generate yield.

If approved, the ETF would add a twist to the growing number of Bitcoin investment products by treating time of day as a factor in its strategy.

The strategy might actually be a sound one as Bitcoin often performs well after U.S. trading hours only for prices to head lower during the daily trading session on Wall Street.

Data from crypto platform Velo.xyz shows that over the past year, Bitcoin's price is more likely to be up when traditional U.S. markets are closed and down when they are open.

Bloomberg News has calculated that Bitcoin performed better after U.S. trading hours throughout 2024 and suggests that derivative positioning could be having an impact on price.

BTC is currently trading at $92,000 U.S., having declined 1.50% this year.