Hashdex Shuts Down Struggling DEFI Bitcoin ETF Amid Investor Exodus

Hashdex is shutting down its Bitcoin ETF, DEFI, after August 17. The fund's share count has dropped by 25% in just three days, indicating investors are redeeming their positions before the shutdown. This comes as US spot Bitcoin ETFs experienced a rebound with $865 million in net inflows last week.

Despite this trend, DEFI has struggled to attract fresh capital since its conversion from a Bitcoin futures strategy to direct Bitcoin holdings on March 27, 2024. The fund recorded only six inflow days and three outflow days during this period. In 2025, it issued $2.14 million in shares but redeemed $4.61 million, resulting in a net capital outflow of $2.47 million.

Investors who remain in DEFI after trading ends will receive cash from the liquidation of its Bitcoin holdings by August 28. The payout will reflect the fund's net asset value after considering Bitcoin price movements, transaction costs, and other expenses associated with the shutdown.