Overview
- Hashdex filed with the SEC to stop DEFI trading after the market close on Aug. 17 and will begin selling the fund’s roughly 225 BTC on Aug. 18 with a pro‑rata cash distribution to remaining shareholders expected on or about Aug. 28.
- DEFI held about $14.7 million in assets as of July 30, making it one of the smallest U.S. spot‑Bitcoin ETFs and leaving fee revenue too small to cover fixed custody, compliance and listing costs.
- Hashdex said it weighed assets under management, trading liquidity, operating costs, investor interest and product fit before deciding to liquidate the fund.
- Shareholders who hold through the final trading day will receive cash, not Bitcoin, which can create execution risk as the fund sells on the open market and may trigger taxable disposals for U.S. investors.
- The closure highlights concentrated flows into a few mega‑funds since the 2024 approvals and does not affect Hashdex’s larger U.S. product NCIQ, which remains active with about $200 million in assets.