Hashdex Closes $14.7M Bitcoin ETF Due to Insurmountable Scale Challenges

Hashdex is closing its Bitcoin ETF, DEFI, which holds just $14.7 million in assets under management as of July 30, according to a press release on GlobeNewswire.

The company cited low scale and trading liquidity as the reasons for shutting down the fund, saying it cannot sustain itself at this level due to high fixed costs, custody fees, and exchange listing expenses that do not scale down with smaller funds.

The final trading day for DEFI is set for August 17, after which shareholders will receive a cash distribution on or about August 28. The fund's assets under management are below the level needed to compete in today's market, where larger and more liquid products dominate.

Hashdex will begin selling its Bitcoin holdings starting August 18, and stop tracking its benchmark during this wind-down period. Shareholders who sell before or on August 17 will receive the prevailing market price through their broker, with standard brokerage charges applying.