Hashdex to Delist and Wind Down DEFI Bitcoin ETF After August 17

Hashdex plans to close and liquidate its Hashdex Bitcoin ETF after a product review, with the fund set to stop trading on NYSE Arca after August 17.

Hashdex Sets Final Trading Date for DEFI

The Hashdex Bitcoin ETF trades under the DEFI ticker and provides spot Bitcoin exposure through a regulated U.S. exchange-traded fund. The product started in 2022 as a Bitcoin futures ETF before shifting to a spot Bitcoin strategy in March 2024.

Hashdex said the closure followed a review of its product lineup. The company considered assets under management, trading liquidity, operating costs, and investor demand before deciding to wind down the fund.

DEFI had about $14.7 million in assets as of July 30, making it one of the smaller U.S. spot Bitcoin funds. The fund’s website listed a net asset value of $71.32 per share and a closing price of $71.15 as of July 31.

The fund normally invests at least 95% of its assets in spot Bitcoin. The rest can remain in cash, cash equivalents, or CME-listed Bitcoin futures.

Shareholders to Receive Cash After Liquidation

Hashdex will stop accepting creation orders from authorized participants after August 17. Investors can still buy or sell shares through brokers until the final trading session ends.

Shareholders who keep DEFI shares through the final trading day will not receive Bitcoin. The fund will sell its holdings, pay liabilities and liquidation costs, then distribute remaining proceeds in cash.

Hashdex expects the cash distribution around August 28. The final amount will depend partly on Bitcoin’s price during the liquidation period and the fund’s remaining expenses.

Investors who sell before August 17 will receive the market price available at the time of sale. Trading spreads and liquidity may become more important as the fund approaches delisting.

The liquidation may also create tax consequences for U.S. investors. The outcome will depend on cost basis, account type, and each investor’s tax situation.

Larger Bitcoin ETFs Pressured Smaller Funds

DEFI entered the U.S. spot Bitcoin ETF market later than larger competitors. Spot Bitcoin ETFs approved earlier had already gathered stronger assets and deeper trading volume by the time DEFI converted.

That made competition difficult for a smaller fund, even with a 0.25% expense ratio. Larger products often benefit from higher liquidity, tighter spreads, and stronger investor attention.

Hashdex is not exiting the U.S. crypto ETF market. Its separate Hashdex Nasdaq CME Crypto Index ETF, trading under NCIQ, had about $206.82 million in net assets as of July 31.

NCIQ offers market-cap-weighted exposure to several crypto assets, including Bitcoin, Ethereum, XRP, Solana, Cardano, Chainlink, Stellar, and Bitcoin Cash. Bitcoin remained the largest allocation in that fund.

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