Key facts
- Hashdex will liquidate its spot Bitcoin ETF (DEFI) after August 17.
- The fund holds approximately 225 BTC.
- Liquidation is due to low investor demand, trading liquidity, and operating costs.
- Shareholders will receive cash distributions, not Bitcoin.
- Hashdex's other crypto ETF, NCIQ, remains active.
Hashdex is set to liquidate its spot Bitcoin ETF, trading under the ticker DEFI, after August 17 due to a strategic review of its product lineup. The decision was influenced by factors such as assets under management, trading liquidity, operating costs, and investor demand. The fund, which had approximately $14.7 million in assets as of July 30, will cease accepting creation orders after August 17. Investors holding shares until the final trading day will receive cash distributions after the fund sells its Bitcoin holdings, pays liabilities, and covers liquidation costs. The fund originally launched in 2022 as a Bitcoin futures ETF before converting to a spot Bitcoin strategy in March 2024. Hashdex stated it is not exiting the U.S. crypto ETF market, with its Hashdex Nasdaq CME Crypto Index ETF (NCIQ) remaining active. The liquidation of DEFI highlights the competitive pressures faced by smaller spot Bitcoin ETFs against larger, more established funds.