Hashdex to Liquidate Spot Bitcoin ETF DEFI

Hashdex Asset Management announced plans to close and liquidate its spot bitcoin ETF, which trades under the ticker DEFI. This decision makes it the first U.S. spot bitcoin fund to wind down operations since the approval of these products in January 2024. The firm pointed to low investor interest, high operating costs, and thin trading liquidity as the primary reasons for the exit.

Investors currently holding shares have until the close of business on August 17 to sell their positions on the exchange. After this date, the fund will stop accepting new creation orders and move toward delisting. Shareholders who keep their positions through the end of the process will receive a cash distribution on or about August 28, based on the net asset value of the fund at the time of liquidation.

The fund held approximately 14.5 million dollars in assets at the time of the announcement. This stands in contrast to industry giants like BlackRock, whose IBIT fund currently manages over 47 billion dollars. While Hashdex is pulling the plug on DEFI, the company stated it remains active in the U.S. market, continuing to manage other products including the Hashdex Nasdaq Crypto Index US ETF.