Hashdex Winds Down Smallest Spot Bitcoin ETF, Citing Low Liquidity

Hashdex plans to liquidate its Bitcoin spot exchange-traded fund (ETF), DEFI, after more than two years of trading on NYSE Arca. According to an SEC filing made public on Monday, Hashdex cited low trading liquidity, ongoing operating costs, and investor demand as reasons for the decision.

The fund, listed under the ticker DEFI, has approximately 225 BTC in its holdings and a net asset value (NAV) of around $14.25 million, based on figures published on its website. The fund's shares have traded since March 2024, but it appears to have struggled to maintain sufficient scale to continue operations.

Hashdex initially launched the DEFI ETF as a Bitcoin futures product in 2022 before transitioning to a spot-BTC ETF in 2024. However, its later start in the market and smaller size compared to competitors may have contributed to its struggles.