Hashdex will liquidate its U.S. spot Bitcoin ETF (DEFI), the first such fund to close, after it failed to attract assets. The smallest of its peers with only ~$14.7M, DEFI will sell its 225 BTC. The closure comes as the broader Bitcoin ETF market sees outflows and investors shift to better-performing AI-related investments, which have soared while the crypto market has fallen.
DEFI ETF liquidation
- ▪The fund will sell its holdings of roughly 225 BTC and distribute cash proceeds to shareholders
- ▪Hashdex cited low assets, poor liquidity, operating costs, and lack of investor interest as reasons for the closure
- ▪Hashdex will liquidate its U.S. spot Bitcoin ETF, DEFI, in August 2026
- ▪The liquidation of DEFI appears to be the first closure of a U.S. spot bitcoin ETF
- ▪The final day of trading for the DEFI ETF is scheduled for August 17, 2026
Bitcoin ETF market performance
- ▪The broader U.S. spot bitcoin ETF market holds $77.6 billion in net assets and has received a cumulative $51.5 billion in net inflows
- ▪The first U.S. spot Bitcoin ETFs were approved for trading in January 2024
- ▪As a group, U.S. spot Bitcoin ETFs have experienced net outflows in each of the last three months
Competitive landscape comparison
- ▪At the time of the announcement, DEFI held between $14.25 million and $14.7 million in net assets, making it the smallest U.S. spot Bitcoin ETF
- ▪The next-smallest spot Bitcoin ETF, WisdomTree's BTCW, holds over $140 million in net assets
- ▪The market leader, BlackRock’s IBIT, holds $47.08 billion in net assets
AI investment competition
- ▪BlackRock’s iShares Future AI & Tech ETF gained 39% through July 2026, while the crypto market fell roughly 36%
- ▪Flows into Bitcoin ETFs have dwindled as investors chase better returns from AI-related investments
Hashdex market position
- ▪The DEFI fund converted to a spot product in late March 2024, nearly three months after its main competitors launched
- ▪DEFI originally launched as a Bitcoin futures ETF in September 2022
- ▪Hashdex is not withdrawing from the U.S. crypto ETF market and still manages over $200 million in other products
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