Hashdex to Liquidate Bitcoin ETF DEFI After Failing to Attract Sufficient Assets

Hashdex Asset Management is liquidating its DEFI spot Bitcoin ETF, the market's smallest, after failing to attract sufficient assets. DEFI, which held roughly 225 BTC and $14.7 million in assets, will halt trading on NYSE Arca on August 17, 2026, with cash payouts expected around August 28, 2026. Originally launched as a futures ETF in 2022 and converted to a spot fund in March 2024, DEFI struggled to compete in a highly concentrated US market dominated by multi-billion-dollar giants like BlackRock's IBIT.

DEFI liquidation timeline

• ▪Shareholders holding DEFI shares at the close of business on August 17, 2026, will receive a cash liquidating distribution expected on or about August 28, 2026.
• ▪The DEFI spot Bitcoin ETF held approximately 225 Bitcoin and between $14.25 million and $14.7 million in net assets as of late July 2026.
• ▪Hashdex Asset Management will close and liquidate its DEFI spot Bitcoin ETF, with trading on NYSE Arca scheduled to end on August 17, 2026.

Bitcoin ETF market concentration

• ▪WisdomTree Bitcoin Trust, the next-smallest comparable US spot Bitcoin fund to DEFI, held approximately $140.37 million in net assets as of August 2026.
• ▪The United States spot Bitcoin ETF market is heavily concentrated, with BlackRock's iShares Bitcoin Trust and a few other major funds capturing the vast majority of inflows and trading volume.

DEFI futures-to-spot conversion history

• ▪Hashdex converted DEFI from a futures fund into a spot Bitcoin fund on March 27, 2024, switching its benchmark to track direct Bitcoin holdings.
• ▪DEFI's net assets peaked at approximately $17.54 million on May 9, 2025, failing to scale against rival spot Bitcoin funds that manage billions of dollars.
• ▪DEFI originally launched in September 2022 as the Hashdex Bitcoin Futures ETF, developed with Teucrium Trading and Victory Capital.

Small-fund economic viability

• ▪Hashdex authorized the closure of DEFI after reviewing factors including the fund's assets under management, trading liquidity, operating costs, and investor interest.
• ▪Bursary analysts note that fixed administrative costs to maintain a product on NYSE Arca typically erode the profitability of crypto products that fail to exceed $100 million in assets.

Industry consolidation trend

• ▪In May 2026, Yorkville America Digital withdrew its registration for a Truth Social-branded spot Bitcoin ETF after gathering less than $50 million in assets.
• ▪Bloomberg Intelligence ETF analyst James Seyffart predicted that under-subscribed crypto ETFs would likely face liquidations and shut down toward the end of 2026 or into 2027.