Bitcoin Spot ETF Liquidated as Hashdex Cuts Losses Amid AI Boom

The first-ever liquidation of a Bitcoin spot ETF in the United States has been announced by Hashdex, a U.S. cryptocurrency asset management firm. The $14.7 million Bitcoin spot ETF product, DEFI (DEFI.US), will cease trading on August 17 and begin selling its remaining Bitcoin holdings to distribute proceeds to shareholders.

This move marks a significant shift in investor preference, as the market has increasingly shifted towards AI-related investment products offering higher returns. According to Woofun AI's compiled data, among all U.S. Bitcoin spot ETFs, Hashdex's DEFI (DEFI.US) has the smallest net asset size and the lowest cumulative net inflows.

The decline of DEFI (DEFI.US) can be attributed to its competitive disadvantages, including a higher expense ratio compared to other products in the market. The fund failed to gain momentum, in stark contrast to the overall growth of the U.S. Bitcoin spot ETF market, which has reached $77.6 billion with cumulative net inflows totaling $51.5 billion since inception.