Hashdex Winds Down Spot Bitcoin ETF Due to Low Liquidity and High Costs

Hashdex is closing its spot Bitcoin ETF, the DEFI product listed on NYSE ARCA, after over two years of operation. The fund's liquidation will occur later this month, with cash proceeds distributed to remaining investors and the approximately 225 BTC holdings sold.

The decision is tied to an internal review of the fund's business and market conditions, including trading liquidity, operating expenses, and investor interest. Hashdex cited these factors as reasons for the liquidation, which will result in a change in practical mechanics of exposure for remaining shareholders. Instead of holding shares in a continuously operating ETF, they will receive cash after the fund sells its underlying Bitcoin holdings.

The fund, which traded on NYSE ARCA under the DEFI ticker since March 2024, reported net assets of about $14.25 million at the time of publication. This is far below the scale of larger U.S. Bitcoin ETF products, such as WisdomTree Bitcoin Trust (BTCW), which had $140.37 million in net assets as of Friday's market close.