BlackRock's Dominance Crushes Competition as First US Spot Bitcoin ETF Shuts Down
The Hashdex Bitcoin ETF (DEFI), the first US spot Bitcoin exchange-traded fund, is shutting down after two years of struggling to gain traction. The decision was announced by Hashdex Asset Management on August 4, with a fixed liquidation schedule outlined in a SEC filing.
As of July 30, 2026, DEFI held approximately $14.7 million in assets under management, equivalent to roughly 225 BTC, but its peak of around $17.54 million in May 2025 was not enough to cover operating costs. The fund's annual fee revenue was negligible compared to the leading funds in the category.
DEFI launched as a Bitcoin futures ETF in September 2022 and converted to a spot product on March 27, 2024, nearly three months after BlackRock's iShares Bitcoin Trust (IBIT) hit the market. The late entry and lack of fee advantage contributed to its failure to compete with IBIT, which has accumulated billions in assets and established a liquidity advantage.
The closure of DEFI marks the consolidation of the US spot Bitcoin ETF market around dominant products, with IBIT accounting for roughly 61% of net assets and absorbing most lifetime inflows. Smaller entrants face an uphill battle to compete with larger funds that have compounded their advantages over time.