Hashdex Axes Spot Bitcoin ETF After Two Years of Struggling to Gain Traction

Hashdex Asset Management has announced it will shut down its spot Bitcoin ETF, ticker DEFI, after two years of operation. The fund failed to gain significant traction in a market dominated by heavyweights like BlackRock. As of July 30, the fund held approximately $14.7 million in assets and about 225 BTC.

DEFI originally launched as a futures-based Bitcoin product before Hashdex converted it into a spot-focused ETF that tracks the Nasdaq Bitcoin Reference Price. The US spot Bitcoin ETF market has exhibited 'winner-take-most dynamics', with a handful of products capturing most inflows.

The fund's net assets peaked at just $18 million, and investors are set to receive cash payouts from liquidating distributions around August 28. Hashdex will continue operating other US products, including the Hashdex Nasdaq CME Crypto Index ETF, ticker NCIQ.