Asset manager XFUNDS has introduced a new exchange-traded fund under the ticker NGHT, employing a distinctive after-hours strategy. The fund indirectly invests in Bitcoin when U.S. markets close and repositions into cash and U.S. Treasuries once trading resumes the next day. This hybrid structure aims to capture the frequent volatility and trading opportunities that Bitcoin often exhibits during evening and overnight hours—patterns distinct from traditional equity markets.
NGHT Fund: Buy Bitcoin at Night, Switch to Treasuries by Day
David Nicholas, CEO of XFUNDS, elaborated on the rationale. Bitcoin trades 24/7, and its price dynamics are increasingly shaped during non-U.S. market hours, he noted. The fund's core goal is to systematically isolate Bitcoin's 'overnight return.' Historical analysis shows that some of Bitcoin's largest gains have occurred in late-night trading windows. Accordingly, NGHT avoids intraday U.S. equity moves by holding only cash and Treasuries during those hours, pivoting to Bitcoin once conventional markets close.
Morgan Stanley Enters the Fray, Intensifying Spot Bitcoin ETF Fee War
The launch of NGHT comes amid fierce competition among spot Bitcoin ETFs in the U.S. market. On the same day, Morgan Stanley debuted its own spot Bitcoin ETF under ticker MSBT, setting a management fee of just 0.14%—undercutting heavyweights like BlackRock and Grayscale. With lower costs, MSBT targets fee-conscious investors seeking direct Bitcoin exposure.
Morgan Stanley's entry carries significant weight given its status as a top-tier U.S. financial institution managing trillions in client assets, supported by a network of roughly 16,000 advisors. Bloomberg Intelligence ETF analyst Eric Balchunas estimated that MSBT could gather up to $5 billion in assets under management in its first year. First-day trading volume was expected to reach $30 million, reflecting strong interest from both institutional and retail investors.
Bitcoin ETF Inflows Rebound with $471 Million Daily Net Inflow
After a period marked by significant outflows, investor appetite for spot Bitcoin ETFs has revived. On Monday, U.S.-listed spot Bitcoin funds recorded $471 million in net inflows, the highest daily total in six weeks. Leading products such as BlackRock's iShares Bitcoin Trust and Fidelity's FBTC fueled the surge, signaling renewed enthusiasm among investors for regulated cryptocurrency exposure.