Hashdex Closes Spot Bitcoin ETF as Investors Flock to AI

A Hashdex's spot bitcoin ETF, DEFI, is shutting down as investors turn to AI-related investments.

The company announced that it will cease trading on August 17 and liquidate its holdings of approximately $14.7 million in Bitcoin, distributing the proceeds to shareholders.

The move comes after months of sluggish performance for the ETF, which managed only a fraction of the assets held by larger rivals like BlackRock's IBIT, with over $47 billion under management.

DEFI was one of the first spot bitcoin ETFs in the US, initially launching as a futures-based product in 2022 and transitioning to its current form in March 2024. However, it failed to attract sufficient investor interest or assets under management.