Hashdex to Liquidate $14.7M Bitcoin ETF Amid Broader Debate Over Spot ETF Outlook

Hashdex has announced that it will liquidate its Hashdex Bitcoin ETF (DEFI), citing a review of the fund's asset size, trading liquidity, operating expenses, investor demand, and its fit within the company's broader lineup of index-based products. The trading of DEFIs shares on the NYSE Arca will cease at the close of business on August 17. After this date, investors who continue to hold their shares will receive a cash distribution based on the fund's remaining Bitcoin holdings.

The fund currently holds approximately $14.7 million in assets and has over $200 million under management across its investment products available to U.S. investors. The decision to liquidate DEFIs comes amid a broader debate over the long-term outlook for spot Bitcoin ETFs, with some analysts predicting that the sector may follow the historical cycle of gold ETFs.

According to Hashdex, the final payout will reflect the fund's net asset value on the liquidation date, after accounting for closing expenses and transaction costs. However, the company also warned that the final payout could vary significantly depending on Bitcoin's price during the liquidation process.