DEFI Bitcoin ETF Winding Down as Fund Struggles to Gain Traction

The Hashdex Bitcoin ETF (DEFI) is being wound down after 19 months of operation. The fund, which was launched in September 2022 as a futures vehicle and converted to a spot fund in March 2024, has struggled to gain traction with investors.

As of July 30, the fund had assets under management of approximately $14.7 million, making it the smallest of the 12 US spot bitcoin exchange-traded funds (ETFs). Despite its small size, the fund's sponsor announced that it would close and liquidate the product, citing a lack of investor interest and high operating costs.

The closure will be effective on August 17, after which shares will stop trading and remaining shareholders will receive a cash distribution. The fund will sell its remaining 225 BTC on the open market before distributing proceeds to investors.