Hashdex Closes Underperforming Bitcoin ETF Amid Intensifying Market Competition

Hashdex Asset Management announced on Wednesday that it will liquidate and close its Hashdex Bitcoin ETF (DEFI) due to low assets under management, limited liquidity, and operating costs. The fund has managed approximately $14.7 million in assets as of July 30.

The decision follows a review of the company's product lineup, which assessed factors such as AuM, trading liquidity, investor demand, operating costs, and how the ETF fits within its broader index-based investment offerings. Hashdex noted that its other US investment products remain unaffected, collectively managing more than $200 million in assets.

Shareholders can continue trading DEFI shares on NYSE Arca until August 17, after which the ETF will stop accepting creation orders from authorized participants, cease trading, and be delisted from the exchange. Investors who hold shares through August 17 will automatically receive a cash distribution, paid on August 28.

The distribution will equal each shareholder's proportionate share of the fund's net asset value after accounting for liquidation expenses, transaction costs, and any changes in Bitcoin's price during the wind-down period. Hashdex emphasized that the decision only affects the DEFI ETF and does not impact its broader digital asset investment business or other products available to US investors.