Hashdex Shuts Down Bitcoin ETF While BlackRock Draws Millions

Hashdex has officially liquidated its Bitcoin ETF, which traded under the ticker DEFI. The firm ended trading for the product on August 17 after concluding that the fund's asset base and operating costs made it difficult to maintain over the long term. Shareholders who held onto their positions are now waiting for a cash payout rather than trading on the open market.

The timing of this closure highlights the current state of the Bitcoin ETF market. While DEFI held roughly 14.7 million dollars in assets, major products like BlackRock's iShares Bitcoin Trust continue to see significant interest. Recent data shows IBIT recorded 143.6 million dollars in inflows during the same period the market saw positive movement across several other Bitcoin products.

Hashdex explained that the decision came down to product fit and operational expenses. The firm maintains that this move is specific to the DEFI fund rather than a reflection of the broader crypto market. Hashdex continues to manage over 200 million dollars in other products for U.S. investors.

Investors still holding shares should expect a cash distribution in late August. Hashdex has noted that the final payout amount will depend on the net asset value of the shares at the time of liquidation, meaning it will be influenced by transaction costs and recent price shifts in Bitcoin.