Summary
- Hashdex will close its Bitcoin ETF, which currently manages approximately $14.7 million.
- Trading will cease on August 17, with cash distributions anticipated around August 28.
- The decision comes after over two years of intense competition in the U.S. spot Bitcoin ETF sector.
Hashdex has announced the termination of its U.S. spot Bitcoin exchange-traded fund (ETF), which has only accumulated $14.7 million in assets under management.
As per a filing with the U.S. Securities and Exchange Commission on Monday, the Hashdex Bitcoin ETF (NYSE Arca: DEFI) will discontinue trading after the market closes on August 17, prior to its delisting. Shareholders holding the fund at that time are expected to receive cash distributions around August 28, following the liquidation of the fund's remaining Bitcoin assets.
According to the filing, “Following the Last Trading Day, the Fund will liquidate its remaining Bitcoin holdings. The Fund will no longer pursue its stated investment objective and will not engage in any business activities other than winding up its business and affairs, preserving the value of its assets, paying its liabilities, and distributing its remaining assets to shareholders.”
Hashdex cited various factors for its decision to liquidate, including the amount of assets under management, trading liquidity, operational expenses, investor demand, and how the fund aligned with its overall product strategy. The firm continues to oversee more than $200 million across other investment products available to U.S. investors.
An exchange-traded fund (ETF) provides investors with exposure to an asset—here, Bitcoin—by allowing them to purchase shares that are traded on a stock exchange. Since the ETF's price is linked to Bitcoin's value, the final distribution may vary from the fund’s current valuation due to price fluctuations during the liquidation process.
This closure occurs over two years after Hashdex launched its entry into the U.S. spot Bitcoin ETF market, following the SEC's significant approval of the first spot Bitcoin ETFs in January 2024.
In March 2024, Hashdex transitioned its Bitcoin futures ETF, which had been trading under the DEFI ticker since September 2022, into a spot Bitcoin ETF in August 2023, holding about 5,500 Bitcoin at that time.
Subsequently, the company aimed to broaden its U.S. product offerings with a combined Bitcoin and Ethereum ETF, but the SEC postponed its decision on the proposal in August 2024.