Hashdex to Shut Down Bitcoin ETF After Struggling to Gain Assets
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- Hashdex is liquidating its U.S. spot Bitcoin ETF (NYSE Arca: DEFI), which held just $14.7 million in assets under management, per an SEC filing Monday.
- Trading ends after Aug. 17; cash distributions to remaining shareholders are expected around Aug. 28 after the fund sells its remaining Bitcoin holdings.
- Hashdex said it evaluated AUM, trading liquidity, operating costs, investor interest, and product lineup fit before deciding to wind down the fund.
- The firm still manages $200 million-plus across investment products available to U.S. investors, suggesting the ETF closure is product-specific rather than firm-wide.
- Hashdex entered the spot Bitcoin ETF market following the SEC's January 2024 approval, converting its Bitcoin futures ETF (DEFI ticker since Sept. 2022) into a spot product in August 2023 with roughly 5,500 Bitcoin.
- The SEC delayed a decision on Hashdex's separate proposal for a combined Bitcoin and Ethereum ETF in August 2024.
Why it matters: For investors who held DEFI shares, the final payout will depend on Bitcoin's price between the Aug. 17 trading halt and the Aug. 28 distribution date — and the fund's $14.7 million AUM underscores how brutally competitive the spot Bitcoin ETF space has become, with Hashdex unable to capture meaningful flows despite entering the market alongside the SEC's landmark January 2024 approval.
