DEFI Bitcoin ETF Faces Shutdown Amid Weak Demand
The DEFI Bitcoin ETF, managed by Hashdex, is facing an uncertain future. Despite a broader rebound in US spot Bitcoin ETFs last week, which saw $865 million in net inflows, the fund has only attracted six inflow days since its conversion to direct Bitcoin holdings in March 2024.
The fund's share count dropped by 25% in just three days, with investors redeeming their positions ahead of the shutdown. This contraction is evident in the fund's assets under management, which fell from $11.77 million and 180.26 BTC on August 7 to $8.7 million and 134.95 BTC on August 11.
The impending shutdown has left investors with a limited window to exit before liquidation. Hashdex will stop trading its DEFI Bitcoin ETF after August 17, with the fund's assets being liquidated by August 28. The eventual payout will reflect the fund's net asset value after accounting for Bitcoin price movements, transaction costs, and other closing expenses.