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Hashdex Asset Management is pulling the plug on its spot Bitcoin ETF, ticker DEFI, after the fund spent two years failing to gain meaningful traction in a market dominated by heavyweights like BlackRock. The ETF will stop trading on NYSE Arca on August 17, 2026, with investors receiving cash payouts from liquidating distributions expected around August 28.
As of July 30, the fund held roughly $14.7 million in assets and approximately 225 BTC. The fund’s net assets peaked at just $18 million.
A fund that never found its footing
DEFI originally launched as a futures-based Bitcoin product before Hashdex converted it into a spot-focused ETF. The fund was designed to track the Nasdaq Bitcoin Reference Price, meaning it held actual Bitcoin rather than derivatives contracts.
The winner-take-most dynamics of Bitcoin ETFs
The US spot Bitcoin ETF market has behaved almost exactly like a power law distribution since the first batch of approvals landed in January 2024. A handful of products, led by BlackRock’s iShares Bitcoin Trust, captured the vast majority of inflows.
Hashdex wasn’t some unknown startup. The firm is a significant player in crypto asset management, particularly in Latin America. The company has said it will continue operating other US products, including the Hashdex Nasdaq CME Crypto Index ETF, ticker NCIQ.
What this means for Bitcoin ETF investors
For the small number of DEFI shareholders, the immediate mechanics are simple. Hashdex will sell the fund’s 225 BTC on the open market, convert everything to cash, and distribute the proceeds.
Investors considering smaller Bitcoin ETFs should pay close attention to AUM trends and trading volumes. A fund with thin liquidity can develop wider bid-ask spreads, and can also face closure and forced liquidation, which creates a taxable event that investors didn’t plan for.
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