Hashdex Axes Underperforming Bitcoin ETF Amid Liquidity Worries

Hashdex has decided to shut down its smallest Bitcoin exchange-traded fund (ETF), citing low trading liquidity, high operating costs, and insufficient investor interest. The decision was made after evaluating various factors.

The spot-price Bitcoin ETF, which debuted in March 2024 under the ticker DEFI, never managed to attract more than $18 million in net assets. With approximately 225 BTC worth around $14.25 million, the fund will pay out its remaining shareholders and sell its holdings in the coming weeks.

The ETF was launched as a Bitcoin futures product in 2022 before transitioning to a spot-price model, but it failed to gain traction despite trading at an all-time high of over $73,000 when it debuted. In contrast, WisdomTree's Bitcoin Trust (BTCW) holds around $140.37 million in net assets.