Hashdex Shuts Down Bitcoin ETF With Quick Deadline For Investors

Hashdex is officially shutting down its spot Bitcoin ETF, trading under the ticker DEFI, leaving investors with a very short window to exit their positions. Shareholders must sell their shares before the close of the New York Stock Exchange on August 17. Anyone holding past that deadline will have their shares automatically liquidated for cash as the fund winds down.

Operating costs pushed the fund into this corner as assets dropped to around $14.7 million. The fund previously warned that managing expenses becomes unreasonable when assets fall below $20 million, prompting this closure decision to protect the remaining value for stakeholders.

Investors who miss the August 17 trading deadline will enter a cash wind down starting August 18. The final payout amount depends on the sale price of the fund's Bitcoin holdings and any remaining costs, meaning cash returns could fluctuate based on market swings during the liquidation period. Official filings also show conflicting dates for when investors will actually receive their money, leaving the exact payout timeline unclear.

Traders holding shares in DEFI should review their options immediately and consult tax advisors regarding liquidating distributions. While this closure affects a smaller fund, larger spot Bitcoin ETFs continue to operate normally with much higher asset levels and different cost structures.