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Hashdex to Liquidate Bitcoin ETF Amid Low Investor Interest

Created at 3 Aug · 3:36 PM1 source↑ Market-relevant
IN SHORT

Hashdex will liquidate its spot-price Bitcoin ETF this month, citing low trading liquidity, operating costs, and investor interest. The fund, which held approximately 225 BTC, will distribute cash to shareholders and sell its holdings.

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Key Numbers

225 BTCfund's Bitcoin holdings
$14.25 millionfund's net assets
200,000fund shares
March 2024ETF listing date
$17.54 millionhighest asset level reached
May 9, 2025date of highest asset level
$140.37 millionWisdomTree Bitcoin Trust assets

Who's Involved

Hashdex
ETF issuer liquidating its Bitcoin fund
Eric Balchunas
Bloomberg Senior ETF analyst

↳ Why This Matters

The liquidation of Hashdex's Bitcoin ETF highlights the challenges faced by newer crypto-focused funds in attracting and retaining assets amidst a competitive market and fluctuating investor interest.

Key facts

  • Hashdex is liquidating its spot-price Bitcoin ETF.
  • The fund will sell its approximately 225 BTC holdings.
  • The decision was driven by factors including trading liquidity, operating costs, and investor interest.
  • The ETF had net assets of $14.25 million and traded under the DEFI ticker.
  • It was originally launched in 2022 as a Bitcoin futures ETF.
  • Hashdex has announced it will liquidate its spot-price Bitcoin exchange-traded fund, citing insufficient trading liquidity, operating costs, and investor interest. The fund, which held approximately 225 BTC, will sell its holdings and distribute the proceeds to remaining shareholders.

    The ETF, which traded on NYSE ARCA under the DEFI ticker since March 2024, had net assets of $14.25 million. It was launched in 2022 as a Bitcoin futures ETF and reached its highest asset level of $17.54 million on May 9, 2025.

    Analysts had noted the fund's late entry into the market, with other competing BTC ETFs debuting months earlier. Despite this, some saw potential if the fees were competitive, especially when Bitcoin was trading near its all-time high of over $73,000.

    Frequently asked questions

    Hashdex is liquidating the ETF due to factors including low trading liquidity, operating costs, and insufficient investor interest.

    The fund will sell its approximately 225 BTC holdings.

    The fund was originally launched in 2022 as a Bitcoin futures ETF and later transitioned to a spot-price Bitcoin ETF.

    The ETF had net assets of $14.25 million at the time of the liquidation announcement.

    What Happens Next

    01Hashdex will sell the fund's 225 BTC holdings.
    02Cash will be distributed to all remaining shareholders.

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    Cadence

    How It Developed

    Hashdex announced the liquidation of its spot-price Bitcoin ETF.
    The fund will sell its approximately 225 BTC holdings.
    Cash will be distributed to remaining shareholders.
    The decision was based on trading liquidity, operating costs, and investor interest.
    The ETF, which traded under the DEFI ticker, had net assets of $14.25 million.
    The fund was originally launched in 2022 as a Bitcoin futures ETF.

    Sources

    T1
    Hashdex to shut smallest Bitcoin ETF after more than two yearsThe spot price Bitcoin exchange-traded fund, which was never able to attract more than $18 million in net assets, will pay out investors and sell its 225 BTC in the coming weeks.Cointelegraph

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