Hashdex to Liquidate Its Spot Bitcoin ETF DEFI

A small U.S. Bitcoin exchange-traded fund is shutting down, marking the first liquidation of its kind in the country and highlighting the intense competition within the sector. Hashdex will close and liquidate its spot Bitcoin ETF, which trades on the NYSE Arca under the ticker DEFI, after the market closes on August 17.

The fund's issuer cited a review of factors including the fund's small asset base, low trading volume, ongoing operating costs, and insufficient investor demand as reasons for the wind-down. According to filings with the Securities and Exchange Commission, the fund held approximately $14.7 million in assets as of July 30, equivalent to roughly 225 Bitcoin. Following the final trading day, the ETF will be delisted from the exchange.

Investors who continue to hold shares after August 17 will not receive Bitcoin. Instead, Hashdex will sell the fund's remaining Bitcoin holdings, settle its obligations, and distribute the net cash proceeds to shareholders. The company expects to make this liquidation payment around August 28. The final amount paid will depend on Bitcoin's price during the portfolio's unwinding and may differ from the fund's last published net asset value.