Hashdex to Shut Down Its Bitcoin ETF After Failing to Attract Investor Interest

Hashdex announced it will liquidate its spot Bitcoin exchange traded fund this month, returning cash to remaining shareholders and selling off the fund’s roughly 225 BTC in holdings. In a filing submitted Monday, the company said the decision followed a review of trading liquidity, operating expenses and overall investor demand.

Fund Struggled From the Start

The fund, trading under the ticker DEFI on NYSE ARCA since March 2024, currently holds just $14.25 million in net assets across 200,000 shares. It launched months after ten competing spot Bitcoin ETFs had already entered the market, even as Bitcoin traded near an all-time high above $73,000 at the time.

Analysts Once Saw Potential Despite Late Entry

Bloomberg senior ETF analyst Eric Balchunas suggested in early 2024 that the fund could still attract interest if its fees were competitive, despite arriving late to the space. However, the fund’s highest asset level reached just $17.54 million in May last year, well below the $140.37 million currently held by WisdomTree’s competing Bitcoin ETF.

Originally Launched as a Futures-Based Product

Before converting to a spot Bitcoin fund, Hashdex’s ETF began in 2022 as a Bitcoin futures-based product, marking a long journey that ultimately failed to gain meaningful investor traction in a crowded market.