Hashdex has decided to close and liquidate its US-listed spot Bitcoin exchange-traded fund, known by the ticker DEFI, citing insufficient trading liquidity, elevated operating costs, and limited investor interest. The fund, which holds approximately 225 Bitcoin and reports net assets of about $14.25 million to $14.7 million, will stop trading on NYSE Arca after August 17.

In a regulatory filing and accompanying announcement, the firm said the move follows a review of the product’s asset levels, market conditions, and overall economics. DEFI will cease accepting creation orders from authorized participants after that date. Remaining shareholders who hold shares through the final trading session will receive a cash distribution, expected around August 28, after the fund sells its Bitcoin holdings, settles liabilities, and covers liquidation expenses. Investors will not receive Bitcoin itself.

Late Arrival and Modest Scale

The product began life in 2022 as the Hashdex Bitcoin Futures ETF before converting to a spot Bitcoin strategy and listing on NYSE Arca in March 2024. That conversion came months after the first wave of 10 competing US spot Bitcoin ETFs had already launched and attracted substantial capital. The fund typically allocates at least 95 percent of assets to spot Bitcoin, with the balance held in cash, cash equivalents, or CME Bitcoin futures.

According to available data, DEFI’s assets under management peaked at $17.54 million on May 9, 2025. By late July 2026 the figure stood near $14.7 million, with a net asset value of $71.32 per share and a closing price of $71.15 as of July 31. The fund has 200,000 shares outstanding. By comparison, the next-smallest major peer, WisdomTree Bitcoin Trust, reported $140.37 million in net assets around the same period.

Despite a competitive 0.25 percent expense ratio, the fund never achieved the scale or trading activity needed to sustain operations in a crowded field dominated by larger products with deeper liquidity and greater investor attention.

Timeline for Shareholders

Trading in DEFI shares can continue through brokers until the close of business on August 17. After that point the fund will begin liquidating its portfolio. The final cash amount distributed to remaining holders will depend in part on Bitcoin’s price during the sale period and any remaining fund expenses. Investors who sell earlier will receive the prevailing market price rather than the eventual liquidation value. Market spreads and liquidity conditions may widen as the delisting approaches.

US investors may face tax implications from the cash distribution, depending on their cost basis, account type, and individual circumstances. The position is expected to disappear from brokerage accounts once the payment is processed.

Hashdex Continues with Multi-Asset Product

The closure of DEFI does not mark Hashdex’s exit from the US crypto ETF market. The firm’s separate Hashdex Nasdaq CME Crypto Index ETF, trading under the NCIQ ticker, held approximately $206.82 million in net assets as of July 31. That fund offers market-capitalization-weighted exposure to several digital assets, including Bitcoin, Ethereum, XRP, Solana, Cardano, Chainlink, Stellar, and Bitcoin Cash. Bitcoin has accounted for the largest allocation. Hashdex earlier reduced NCIQ’s management fee to 0.25 percent.

DEFI’s wind-down illustrates the challenges faced by smaller or later-arriving products in the US spot Bitcoin ETF category, where capital and trading volume have concentrated among the larger, more established funds.