Hashdex Closes Bitcoin ETF Due to Intense Market Competition
Hashdex Ltd, a crypto asset manager, announced that it will liquidate its spot Bitcoin exchange-traded fund (ETF), the Hashdex Bitcoin ETF (DEFI), after failing to attract sufficient investor demand. The decision underscores the intense competition in the U.S. crypto ETF market, where assets and trading activity have concentrated among a few dominant players.
The last trading day for DEFI will be August 17, after which it will stop accepting creation orders and be delisted. Around August 28, Hashdex will sell the fund's bitcoin holdings and distribute cash to remaining shareholders. As of July 30, the fund held approximately 225 BTC, with net assets of about $14.7 million.
The closure marks the end of a product that launched in March 2024, months after the first wave of U.S. spot Bitcoin ETFs hit the market. Hashdex said the decision followed a review of trading liquidity, operating costs, and investor interest. The fund's persistent underperformance in attracting inflows was a significant factor.
Despite initial optimism, DEFI never gained significant traction. Data shows its peak net assets reached $17.54 million on May 9, 2025, while the largest funds have attracted billions of dollars in inflows. For investors holding DEFI shares, the liquidation means they will receive cash based on the fund's final net asset value after fees and closing costs.