Hashdex has announced plans to liquidate its spot-price Bitcoin exchange-traded fund (ETF) this month, with proceeds to be distributed to remaining shareholders and its 225 BTC holdings sold. The decision follows a review of trading liquidity, operating costs, and investor demand, according to the firm. The ETF, trading on NYSE ARCA under the DEFI ticker since March 2024, currently holds $14.25 million in net assets.
The fund, which reached a peak of $17.54 million in assets on May 9, 2025, according to SoSoValue, has faced challenges in maintaining consistent investor interest. Hashdex cited “operating costs and evolving market conditions” as key factors in its decision to terminate the product. The ETF had 200,000 shares outstanding at the time of its launch.
WisdomTree Bitcoin Trust (BTCW), a competing Bitcoin ETF, reported $140.37 million in net assets as of Friday’s market close, highlighting the sector’s competitive landscape. Bloomberg Senior ETF analyst Eric Balchunas had previously noted the potential for ETFs in March 2024, though Hashdex’s move underscores the risks of entering a crowded market.
The liquidation comes amid broader scrutiny of Bitcoin ETFs, with industry participants balancing growth opportunities against operational hurdles. Shareholders will receive cash distributions after the sale of the fund’s BTC holdings, marking the end of a product that had attracted $14.25 million in assets but failed to sustain momentum.
Written by Oliver Grant
Markets Desk
