Hashdex Closes DEFI Bitcoin ETF Amid Uneven Demand

Hashdex has announced that its DEFI Bitcoin ETF will stop trading after August 17th, giving investors one last chance to exit before the fund is liquidated on August 28th. According to an SEC filing, remaining investors will receive cash from the liquidation of the fund's Bitcoin holdings, with payouts reflecting the fund's net asset value after accounting for price movements, transaction costs, and other expenses.

The impending deadline has already led to a decline in the fund's assets, falling to $8.7 million in assets and 134.95 BTC on August 11th from $11.77 million and 180.26 BTC on August 7th. The number of outstanding shares also decreased by 25% over those three days, suggesting investors are redeeming their positions ahead of the shutdown.

The news comes as US spot Bitcoin ETFs continue to attract strong demand, with $865.3 million in net inflows between August 3rd and August 7th, according to Farside Investors data. However, Hashdex's decision to close DEFI highlights how unevenly that demand is distributed, with BlackRock's IBIT accounting for 80.1% of the total inflows.