Hashdex to liquidate DEFI spot Bitcoin ETF by August 17 after struggling with inflows

Hashdex will liquidate its DEFI spot Bitcoin ETF, with trading ending on August 17, 2026, and cash payouts distributed by August 28, 2026. This marks the first liquidation of a U.S. spot Bitcoin ETF. The fund struggled with weak demand, recording only six inflow days since its March 2024 conversion. The closure highlights extreme market concentration, where BlackRock's IBIT dominates, and a broader investor shift toward high-performing AI assets. Hashdex will continue managing over $200 million in other U.S. products.

DEFI ETF liquidation timeline

• ▪Hashdex will stop trading its DEFI spot Bitcoin ETF after the close of market on August 17, 2026, and will distribute cash proceeds from the liquidation of its Bitcoin holdings to remaining shareholders by August 28, 2026.
• ▪The Hashdex DEFI spot Bitcoin ETF held approximately $8.7 million in assets and 134.95 BTC on August 11, 2026, down from $11.77 million and 180.26 BTC on August 7, 2026.
• ▪Between August 7, 2026, and August 11, 2026, the Hashdex DEFI spot Bitcoin ETF experienced a 25% decline in outstanding shares, dropping from 160,000 to 120,000 shares as investors redeemed positions ahead of the shutdown.
• ▪The liquidation of the Hashdex DEFI spot Bitcoin ETF represents the first closure and liquidation of a U.S. exchange-traded fund that holds Bitcoin directly.

Investor exodus to AI

• ▪The BlackRock iShares Future AI & Tech ETF gained 39% through July 2026 and held $3.6 billion in assets, while the broader crypto market fell approximately 36% based on the CoinDesk 20 Index.
• ▪Flows into U.S. spot Bitcoin ETFs have dwindled as investors have increasingly sought higher returns from artificial intelligence-related investments.

Bitcoin ETF market concentration

• ▪The U.S. spot Bitcoin ETF market is highly concentrated, with BlackRock's IBIT holding $47.08 billion in net assets and receiving $60.5 billion in cumulative inflows, while Fidelity's FBTC received approximately $9.95 billion.
• ▪During the week of August 3 to August 7, 2026, U.S. spot Bitcoin ETFs attracted $865.3 million in net inflows, with BlackRock's IBIT accounting for $693.5 million, or 80.1%, of the total.
• ▪The Hashdex DEFI spot Bitcoin ETF was the smallest U.S. spot Bitcoin ETF with $14.7 million in net assets prior to its liquidation announcement, compared to $142.4 million for the next-smallest fund, WisdomTree's BTCW.

DEFI weak inflow performance

• ▪Since converting from a Bitcoin futures strategy to a spot Bitcoin ETF on March 27, 2024, the Hashdex DEFI fund recorded only six daily inflow days and three daily outflow days.
• ▪In 2025, the Hashdex DEFI spot Bitcoin ETF issued $2.14 million of shares and redeemed $4.61 million, resulting in a net capital outflow of $2.47 million and leaving $11.90 million in net assets at year-end.
• ▪The Hashdex DEFI spot Bitcoin ETF recorded zero creations or redemptions in the first quarter of 2026, during which its annualized gross expense ratio was 0.25%.

Hashdex remaining crypto products

• ▪Hashdex continues to manage more than $200 million in products available to U.S. investors and is not withdrawing from the U.S. crypto ETF market.
• ▪Among its remaining U.S. offerings, Hashdex continues to manage the diversified Hashdex Nasdaq Crypto Index US ETF (NCIQ).