Hashdex Closes Underperforming Bitcoin Spot ETF Amid AI Surge

Hashdex announced that it will liquidate its $14.7 million DEFI bitcoin spot ETF on August 17, marking what could be the first closure of a fund of this type in the U.S.

The decision was made after a comprehensive evaluation by Hashdex, which considered factors such as assets under management volume, liquidity, operating costs, investor interest, and the product's positioning within its lineup.

Despite having an expense ratio of 0.25%, matching that of market leaders BlackRock and Fidelity, the fund struggled to attract investors due to its late entry into the market and lack of competitiveness in terms of pricing.

The closure comes as bitcoin spot ETFs continue to face challenges, with three consecutive months of net outflows. The superior performance of AI investments has also been a major factor, with BlackRock's iShares Future AI & Tech ETF accumulating a 39% gain through July and managing $3.6 billion in assets.