TLDR
Hashdex will liquidate its DEFI spot Bitcoin ETF after weak liquidity and limited investor demand.
DEFI will stop trading on NYSE Arca on August 17, 2026.
Investors are expected to receive cash distributions around August 28, 2026.
The fund held roughly 225 BTC and about $14.7 million in assets by July 30.
Hashdex will sell the fund’s Bitcoin holdings on the open market before distributing the proceeds.
Hashdex Asset Management will close its DEFI spot Bitcoin ETF after weak trading activity and limited investor demand. The fund will stop trading on NYSE Arca on August 17, 2026, before Hashdex sells its Bitcoin and returns cash to shareholders.
The liquidation will end a two-year effort to compete in a US market led by much larger funds. DEFI held about 225 Bitcoin and between $14.25 million and $14.7 million in net assets at the end of July.
Hashdex Sets August Liquidation Schedule
Hashdex said it reviewed trading liquidity, operating costs and investor interest before approving the closure. The fund plans to sell its holdings on the open market and convert the remaining portfolio into cash.
Shareholders should receive liquidating distributions around August 28. Investors who keep their shares until liquidation will receive cash based on the fund’s final net asset value, after fees and closing costs.
DEFI began in 2022 as the Hashdex Bitcoin Futures ETF. The company later converted it into a spot Bitcoin fund that tracked the Nasdaq Bitcoin Reference Price and held Bitcoin directly.
The fund’s assets reached a peak of about $17.54 million in May 2025. Other figures placed its high near $18 million, leaving it far behind rival products that attracted billions of dollars.
Large Bitcoin ETFs Control Investor Flows
The US spot Bitcoin ETF market has remained concentrated since approvals began in January 2024. BlackRock’s iShares Bitcoin Trust and several other major funds captured most inflows and trading volume.
Hashdex entered the spot market after ten competing products had already launched. Even WisdomTree Bitcoin Trust, the next-smallest comparable fund, held about $140.37 million in assets by Friday’s market close.
DEFI shareholders do not need to sell before trading ends, but the closure will remove the choice to stay invested through the fund. Hashdex will distribute cash instead of transferring Bitcoin or shares into another ETF.
The payout may create a taxable event for some investors. The closure also shows why buyers often review assets under management, daily volume, and bid-ask spreads before choosing smaller Bitcoin ETFs.
