Hashdex Liquidates US Spot Bitcoin ETF Amid Shifting Investor Interest

Hashdex has announced it will liquidate its U.S. spot bitcoin ETF, DEFI, after August 17th. The fund held just $14.7 million in net assets, dwarfed by its competitors WisdomTree's BTCW ($142.4 million) and BlackRock's IBIT ($47.08 billion). This marks the first time a U.S. fund holding bitcoin directly has been liquidated.

The closure comes as investor enthusiasm is shifting towards artificial intelligence plays. Bitcoin ETFs have posted net outflows for three straight months, with flows into AI-linked funds on the rise. BlackRock's iShares Future AI & Tech ETF gained 39% through July while the crypto market fell about 36%.

Hashdex cited low assets under management, thin liquidity, and ongoing operating costs as reasons behind the decision to liquidate DEFI. The company will sell off the remaining bitcoin holdings and distribute cash to shareholders after trading ends on August 17th.