Key Takeaways:
XFUNDS has launched a new exchange-traded fund (ETF) with the ticker NGHT, offering a novel strategy that provides investors with exposure to Bitcoin's overnight price movements while holding U.S. Treasuries during regular U.S. trading hours.
"This structure is a direct response to market demand for crypto exposure with guardrails," said a crypto fund analyst. "It allows traditional investors to dip their toes into Bitcoin volatility while maintaining a safe-haven asset during their core hours."
The fund, officially named the XFUNDS Bitcoin Overnight Risk-Managed ETF, aims to capture the majority of Bitcoin's price action, which historically occurs outside of U.S. market hours. During the day in the U.S., the fund will divest its Bitcoin futures positions in favor of short-term U.S. Treasuries, aiming to reduce volatility and offer a yield component.
The introduction of this hybrid ETF could attract a new class of risk-averse investors to the cryptocurrency market, potentially increasing liquidity for Bitcoin. Its success might also spur the development of similar structured products that blend crypto and traditional assets, bridging the gap between the two financial worlds.
This article is for informational purposes only and does not constitute investment advice.
