Smaller Bitcoin ETFs Struggle as Hashdex Closes DEFI

Hashdex is closing its Bitcoin ETF (DEFI) due to insufficient investor demand and low trading activity. The fund struggled to compete against larger Bitcoin ETFs with greater liquidity, lower fees, and stronger brand recognition.

The decision was announced in a regulatory filing on August 3, citing operating costs and investor interest as the main reasons behind the closure. Following the final trading day on August 17, Hashdex will sell the fund's remaining 225 BTC and distribute cash proceeds to shareholders later in August.

DEFI's asset base was approximately $14.26 million, making it one of the smaller U.S. spot Bitcoin ETFs. The fund charged a 0.94% annual management fee, which is higher than many major Bitcoin ETFs.