Hashdex is closing DEFI, making it the first US spot Bitcoin exchange-traded fund to be shut down after reaching the US market. The fund will keep trading on NYSE Arca until August 17, after which it will be delisted and wound down.

The closure comes after the product remained small despite some asset growth. In its last full quarter, DEFI generated $6,453 in fees, and the fund had $14.56 million in assets as of August 4.

Trading ends on August 17

Shareholders can sell DEFI shares on the exchange until August 17. Once trading stops, the shares will be removed from NYSE Arca and Hashdex will begin liquidating the fund’s holdings.

As part of the wind-down, the sponsor plans to sell DEFI’s 225.58 BTC. Investors who still hold shares at that point are expected to receive cash distributions around August 28, with closing costs deducted from the amount paid out.

Hashdex flags liquidity and price risks

The sponsor warned that Bitcoin’s price could move sharply while the fund’s holdings are being sold, which could affect the final cash amount investors receive. That means holders who wait for liquidation will be exposed to market swings during the sale process.

Selling before the delisting may also be difficult for some investors because trading activity in the fund has been light. On August 4, DEFI changed hands just 131 times, representing about $9,560 in value.

A small fund in a scale-driven market

DEFI tracked Bitcoin closely, with performance deviating by only 0.02% from the asset it followed, according to the source article. The fund also showed some growth, with assets rising from $9.22 million on March 31 to $14.56 million by August 4, while the share count increased from 120,000 to 200,000.

Even so, the product remained modest in size. Over more than two years, DEFI brought in a total of $4.27 million. The article argues that timing alone does not explain the outcome, noting that Morgan Stanley’s MSBT launched much later, in April 2026, and reportedly attracted about $34 million on its first day. WisdomTree’s BTCW was cited as another example of a small Bitcoin ETF facing similar challenges.

Not a US exit for Hashdex

DEFI began in 2022 as a futures-based fund before switching in March 2024 to direct Bitcoin exposure. Its shutdown does not appear to signal a broader retreat by Hashdex from the US market, where the firm still manages more than $200 million across its products.

The immediate next step is the delisting on August 17, followed by liquidation of the Bitcoin held by the fund and the expected cash payment around August 28. Beyond this closure, the episode highlights a broader question for the ETF market: how many smaller issuers can remain viable when most assets are concentrated among the largest fund managers.

Source: beincrypto.com