Blab Crypto
Hashdex to Close and Liquidate US-Listed Bitcoin ETF DEFI
When a digital‑asset product finally says goodbye, investors get a clear timetable.
Hashdex Asset Management has announced that its U.S.‑listed Bitcoin ETF, trading on NYSE Arca under the ticker DEFI, will cease trading on August 17, 2026. After that date the fund will be liquidated and its shares delisted.
The decision comes after a review of the ETF’s performance. As of July 30, DEFI held roughly $14.7 million in assets, making it one of the smallest spot Bitcoin products in the United States. The fund’s net asset value was $71.32 per share on July 31, while the closing market price that day was $71.15.
Hashdex cited several factors that led to the closure: a low asset base, thin trading liquidity, operating expenses, and weak investor demand. The ETF’s expense ratio stands at 0.25 %, and it invests at least 95 % of its assets in spot Bitcoin, with the remainder held in cash, cash equivalents, or CME‑listed Bitcoin futures.
Under the liquidation plan, the fund will stop accepting creation orders from authorized participants after August 17. Shareholders who hold DEFI shares beyond that date will not receive Bitcoin; instead, the fund will sell its holdings and distribute the proceeds in cash. The distribution is expected around August 28. Because the final payment depends on the price of Bitcoin during the liquidation period, the amount received may differ from the fund’s net asset value before trading ends.
A cash distribution could trigger tax consequences for U.S. investors, depending on a shareholder’s cost basis, account type, and individual circumstances.
Hashdex’s decision to close DEFI does not signal an exit from the U.S. crypto‑ETF market. The company’s other product, the Hashdex Nasdaq CME Crypto Index ETF (ticker NCIQ), remains active and held about $206.8 million in assets as of July 31. NCIQ offers market‑cap‑weighted exposure to Bitcoin, Ethereum, XRP, Solana, Cardano, Chainlink, Stellar, and Bitcoin Cash, with Bitcoin representing 78 % of the portfolio and Ethereum 12.2 %. In March, Hashdex reduced NCIQ’s annual management fee from 0.50 % to 0.25 %.
DEFI entered the spot Bitcoin ETF space by converting an existing futures‑based product. The fund began holding spot Bitcoin in March 2024, more than two months after the Securities and Exchange Commission approved the first wave of spot Bitcoin ETFs in January. By that time, larger competitors such as BlackRock had already amassed substantial assets and trading volume, making it difficult for DEFI to compete on liquidity.
Investors who sell their DEFI shares before August 17 will receive the prevailing market price, which may diverge from the fund’s net asset value as the closure approaches. Trading volume and bid‑ask spreads are likely to widen in the final weeks.
The closure applies only to DEFI. Hashdex’s other crypto investment products, including NCIQ, remain unchanged.
In summary, Hashdex will stop trading DEFI on August 17, liquidate the fund’s assets, and distribute cash to shareholders around August 28. The decision reflects the fund’s low asset base, limited liquidity, and weak demand, and it does not affect Hashdex’s other crypto‑ETF offerings.
Hashdex Asset Management has announced that its U.S.‑listed Bitcoin ETF, trading on NYSE Arca under the ticker DEFI, will cease trading on August 17, 2026. After that date the fund will be liquidated and its shares delisted.
The decision comes after a review of the ETF’s performance. As of July 30, DEFI held roughly $14.7 million in assets, making it one of the smallest spot Bitcoin products in the United States. The fund’s net asset value was $71.32 per share on July 31, while the closing market price that day was $71.15.
Hashdex cited several factors that led to the closure: a low asset base, thin trading liquidity, operating expenses, and weak investor demand. The ETF’s expense ratio stands at 0.25 %, and it invests at least 95 % of its assets in spot Bitcoin, with the remainder held in cash, cash equivalents, or CME‑listed Bitcoin futures.
Under the liquidation plan, the fund will stop accepting creation orders from authorized participants after August 17. Shareholders who hold DEFI shares beyond that date will not receive Bitcoin; instead, the fund will sell its holdings and distribute the proceeds in cash. The distribution is expected around August 28. Because the final payment depends on the price of Bitcoin during the liquidation period, the amount received may differ from the fund’s net asset value before trading ends.
A cash distribution could trigger tax consequences for U.S. investors, depending on a shareholder’s cost basis, account type, and individual circumstances.
Hashdex’s decision to close DEFI does not signal an exit from the U.S. crypto‑ETF market. The company’s other product, the Hashdex Nasdaq CME Crypto Index ETF (ticker NCIQ), remains active and held about $206.8 million in assets as of July 31. NCIQ offers market‑cap‑weighted exposure to Bitcoin, Ethereum, XRP, Solana, Cardano, Chainlink, Stellar, and Bitcoin Cash, with Bitcoin representing 78 % of the portfolio and Ethereum 12.2 %. In March, Hashdex reduced NCIQ’s annual management fee from 0.50 % to 0.25 %.
DEFI entered the spot Bitcoin ETF space by converting an existing futures‑based product. The fund began holding spot Bitcoin in March 2024, more than two months after the Securities and Exchange Commission approved the first wave of spot Bitcoin ETFs in January. By that time, larger competitors such as BlackRock had already amassed substantial assets and trading volume, making it difficult for DEFI to compete on liquidity.
Investors who sell their DEFI shares before August 17 will receive the prevailing market price, which may diverge from the fund’s net asset value as the closure approaches. Trading volume and bid‑ask spreads are likely to widen in the final weeks.
The closure applies only to DEFI. Hashdex’s other crypto investment products, including NCIQ, remain unchanged.
In summary, Hashdex will stop trading DEFI on August 17, liquidate the fund’s assets, and distribute cash to shareholders around August 28. The decision reflects the fund’s low asset base, limited liquidity, and weak demand, and it does not affect Hashdex’s other crypto‑ETF offerings.
