New ETF Proposal Targets Bitcoin’s Overnight Returns as Outflows Hit Record Levels

A new ETF proposal is making waves on Wall Street — and it targets one of Bitcoin’s most overlooked strengths: its overnight performance. The idea is simple but bold. Instead of holding Bitcoin throughout the full trading day, this ETF would focus specifically on the hours when traditional markets are closed and crypto trading is the most volatile and often the most profitable.

Why now? Because Bitcoin ETFs have just suffered their largest outflows on record, with nervous investors pulling money as macro uncertainty rises. That slump is forcing asset managers to get creative, and an “overnight returns ETF” could offer a fresh angle for traders who believe Bitcoin’s biggest moves happen when Wall Street is asleep.

Historically, BTC has shown a tendency to post stronger gains during off-hours — driven by Asia-based activity, lower liquidity, and crypto-native market flows. Capturing only that window might appeal to short-term traders or those seeking amplified volatility without round-the-clock exposure.

But it’s not without risk. Overnight moves can be dramatic in both directions, and concentrating exposure amplifies that danger. Plus, with outflows still weighing on sentiment, it’s unclear whether investors want more specialized products right now.

Still, this ETF shows one thing clearly: the race to innovate in Bitcoin finance isn’t slowing — even when the money is moving out.