Hashdex's DEFI Bitcoin ETF Faces Liquidation After Failing to Attract Investment

Hashdex's DEFI Bitcoin ETF is facing liquidation after failing to attract significant investment. The fund has only registered six inflow days since its conversion from a Bitcoin futures strategy in March 2024.

DEFI had $8.7 million in assets and held 134.95 BTC on August 11, down from $11.77 million and 180.26 BTC on August 7. Shares outstanding fell to 120,000 from 160,000 over those three days, a 25% decline that indicates investors were redeeming positions ahead of the shutdown.

The deadline for investors to exit is August 17, after which the fund will be liquidated and investors who remain will receive cash by August 28. The payout will reflect the fund's net asset value after Bitcoin price movements, transaction costs, and other closing expenses.