Hashdex is shutting down its Bitcoin ETF (ticker: DEFI), marking the first closure of a US spot Bitcoin exchange-traded fund. Shares trade on NYSE Arca until August 17, with investors holding positions receiving cash distributions around August 28. The fund held $14.56 million in assets as of August 4, generating $6,453 in fees during its last full quarter in early 2026. Hashdex cited insufficient scale as the closure reason, with the fund's 0.25% fee producing approximately $26,000 annually on current assets while operational costs including custody, audits, legal services, and regulatory filings exceeded revenue. The closure follows the fund's March 2024 conversion from a Bitcoin futures ETF to a spot Bitcoin product after launching in 2022.
Hashdex Announces August 17 Delisting and Cash Distribution Process
Investors can sell their DEFI shares through standard brokerage channels until August 17, with normal broker fees applying. After August 17, shares stop trading and get removed from the NYSE Arca exchange. Hashdex then sells the fund's 225.58 Bitcoin holdings, with shareholders receiving their proportional share of the cash proceeds minus closing costs around August 28. The sponsor noted in filings that Bitcoin's price could fluctuate during the liquidation period. Bitcoin traded near $64,274 on Wednesday, up 0.6%.
![Hashdex Bitcoin ETF Volume and Flows]()
Hashdex Bitcoin ETF Volume and Flows. Source: SoSoValue
DEFI Fund Performance Shows 58% Asset Growth Despite Low Trading Volume
The fund tracked Bitcoin's price within 0.02% accuracy throughout its operational period. Assets climbed 58% between March 31 and August 4, rising from $9.22 million to $14.56 million. Share count increased from 120,000 to 200,000 during the same period. However, trading volume remained minimal, with just 131 shares changing hands on August 4, representing $9,560 in transaction value. SEC filings show fee revenue totaled $47,521 across all of 2025, declining to $6,453 in the early 2026 quarterly report.
![Hashdex Common Shares Outstanding]()
Hashdex Common Shares Outstanding. Source: Hashdex Website
Hashdex Bitcoin ETF Size Compared to BlackRock and WisdomTree Competitors
BlackRock's Bitcoin ETF charges the same 0.25% fee while holding $47.5 billion as of August 4, approximately 3,260 times DEFI's asset size. WisdomTree's BTCW Bitcoin ETF maintains $143.3 million in assets at the identical 0.25% fee structure. Morgan Stanley's MSBT Bitcoin ETF, which launched in April 2026 after DEFI's March 2024 spot conversion, attracted approximately $34 million on its first day. DEFI accumulated $4.27 million in total inflows over more than two years. Hashdex continues operating over $200 million in other US fund products.
FAQ
What happens to investors holding Hashdex Bitcoin ETF shares after August 17?
Investors holding DEFI shares after the August 17 delisting receive cash distributions around August 28. Hashdex sells the fund's 225.58 Bitcoin holdings and distributes proceeds to shareholders proportionally, minus closing costs. The sponsor warned that Bitcoin price fluctuations during the liquidation period could affect final distribution amounts.
Why did Hashdex close its Bitcoin ETF despite 58% asset growth?
Hashdex closed DEFI because the fund's $14.56 million in assets generated insufficient fee revenue to cover operational expenses. The 0.25% fee produced approximately $26,000 annually while costs for custody, audits, legal services, and regulatory compliance exceeded income. The fund earned $6,453 in fees during its last full quarter in early 2026, down from $47,521 for all of 2025.
