First Spot Bitcoin ETF Shut Down in US Amid Economic Infeasibility
Hashdex, a cryptocurrency asset management company, announced it would close and liquidate its Bitcoin spot ETF, DEFI (NYSE Arca), in the US. This marks the first time a spot Bitcoin ETF has been shut down in the country.
The fund's decision to liquidate came after evaluating various factors, including size, transaction liquidity, operating expenses, investor demand, and Hashdex's broader product strategy. According to documents filed with the SEC, the value of assets under management by DEFI was approximately $14.7 million as of July 30.
DEFI offered investors direct exposure to daily fluctuations in Bitcoin prices. The fund consisted solely of physically held Bitcoin and cash for operational needs, share creation, and repurchase transactions. Investors can sell their shares on the NYSE Arca until August 17, when the fund will be delisted from the exchange.
Hashdex will liquidate its portfolio by selling the remaining Bitcoins after August 17. Investors who do not sell their shares by then will receive a cash payment equivalent to the net asset value of their shares on the liquidation date, expected around August 28.