Hashdex Closes First U.S. Spot Bitcoin ETF Amid AI Fund Surge

Hashdex is closing its U.S. spot bitcoin ETF, DEFI, after failing to gain traction in the market. The fund had just $14.7 million in net assets and was launched nearly three months after BlackRock's IBIT hit the market. The closure marks the first liquidation of a U.S. fund that holds bitcoin directly, rather than through futures contracts.

According to Hashdex, the decision was made due to low assets under management, thin liquidity, ongoing operating costs, weak investor interest, and how the fund fit within its broader lineup of products. The company pointed out that it entered the spot bitcoin race later than its rivals, which may have contributed to DEFI's struggles.

The closure comes at a time when investor enthusiasm is shifting away from crypto and toward artificial intelligence plays. BlackRock's iShares Future AI & Tech ETF has gained 39% through July, while the broader crypto market has fallen about 36%. This trend has led to outflows from bitcoin ETFs for three straight months.