Hashdex to shutter $14.7M US spot Bitcoin ETF DEFI after low inflows and thin trading Hashdex has announced it will close and liquidate its NYSE Arca‑listed Bitcoin ETF (ticker: DEFI) after the fund failed to attract sufficient assets and trading activity. The company told the Wall Street Journal that DEFI will stop trading after the market close on Aug. 17, with liquidation and delisting to follow. Key timeline and mechanics - Final trading day: Aug. 17. Investors can buy or sell DEFI on exchanges until the close, but market prices may diverge from NAV as liquidity thins. - Creation orders: Authorized participants will not be able to submit new creation orders after Aug. 17. - Liquidation and cash distribution: Hashdex will sell the fund’s Bitcoin holdings and expects to distribute the remaining proceeds in cash around Aug. 28, after deducting liabilities and liquidation costs. Shareholders who hold through liquidation will receive cash—not Bitcoin. Why Hashdex is closing DEFI Hashdex cited low asset base, weak trading liquidity, operating costs and muted investor demand as reasons for shutting DEFI. As of July 30 the fund managed roughly $14.7 million, placing it among the smallest US spot Bitcoin ETFs. Low assets and limited trading made it difficult for DEFI to compete with earlier, larger entrants despite a relatively low 0.25% expense ratio. Fund structure and investor implications - DEFI’s website listed a NAV of $71.32 per share and a closing price of $71.15 as of July 31. - The fund typically invested at least 95% of assets in spot Bitcoin, with the remainder in cash, cash equivalents and CME‑listed Bitcoin futures. - Because DEFI will be liquidated into cash, investors keeping shares past the final trade date should expect a cash payment influenced by Bitcoin’s price during the unwind; the final distribution may differ from pre‑closure NAV. - The liquidation may trigger taxable events for US investors depending on cost basis, account type and individual tax circumstances. Investors who sell before Aug. 17 will receive the prevailing market price, not the eventual liquidation value. How DEFI entered the market DEFI arrived in the US spot Bitcoin ETF landscape via a conversion of an existing futures‑based product and only began holding spot Bitcoin in March 2024—more than two months after the SEC approved the first wave of spot Bitcoin ETFs in January. That delayed start left DEFI behind competitors that had already collected significant assets and trading volume. Hashdex’s broader US ETF lineup Hashdex said the DEFI closure does not mean it is exiting the US crypto ETF market. Its other US product, the Hashdex Nasdaq CME Crypto Index ETF (NCIQ), held about $206.82 million in net assets as of July 31. NCIQ provides market‑cap‑weighted exposure to several crypto assets — Bitcoin (78% of the fund as of July 27), Ethereum (12.2%), XRP, Solana, Cardano, Chainlink, Stellar and Bitcoin Cash. Hashdex cut NCIQ’s management fee from 0.50% to 0.25% in March and rebranded the fund earlier this year while keeping the same ticker. Bottom line DEFI shareholders face a tight timeline: sell by Aug. 17 to exit via the market, or hold and receive a cash distribution expected around Aug. 28 that will reflect Bitcoin prices during liquidation. The shutdown affects only DEFI; NCIQ and Hashdex’s other crypto offerings remain active.
Hashdex to Liquidate $14.7M DEFI Spot Bitcoin ETF After Poor Inflows
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Hashdex to Liquidate $14.7M DEFI Spot Bitcoin ETF After Poor Inflows
According to the latest Bitcoin ETF news, Hashdex will liquidate its $14.7 million DEFI ETF listed on NYSE Arca due to poor inflows and low activity. The fund will stop trading on August 17, with cash distributions to investors expected by August 28. Hashdex cited weak assets, thin liquidity, and low demand as reasons for the move. The ETF started holding spot Bitcoin in March 2024, later than other SEC-approved products. A DeFi exploit or delayed entry may have hurt its appeal. Hashdex remains in the US ETF market, with NCIQ holding $206.82 million in assets.
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