Hashdex to liquidate US spot Bitcoin ETF DEFI after failing to attract assets

Aug 3, 2026

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.