Hashdex to shut smallest Bitcoin ETF after more than two years
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Hashdex is shutting down its smallest spot Bitcoin exchange-traded fund (ETF), which has never attracted more than $18 million in net assets. The fund, trading under the DEFI ticker on NYSE ARCA since March 2024, holds about 225 BTC and will liquidate its holdings and pay out investors in the coming weeks. The decision was based on factors including trading liquidity, operating costs, and investor interest.
Why it matters
The closure highlights challenges faced by late entrants in the competitive BTC ETF market, particularly regarding liquidity and attracting investor assets. It also demonstrates that some smaller ETFs may struggle to sustain operations if they cannot garner sufficient investor interest and manage costs effectively.
Key context
The Hashdex Bitcoin ETF originally launched in 2022 as a Bitcoin futures ETF and peaked at $17.54 million in assets in May 2025. It entered the market later than at least 10 competing BTC ETFs, some of which had launched months earlier and succeeded in attracting significantly larger net assets. For comparison, the WisdomTree Bitcoin Trust (BTCW) currently holds $140.37 million in net assets.
Key numbers and entities
Hashdex, NYSE ARCA (DEFI ticker), 225 BTC holdings, $14.25 million in current net assets, $17.54 million peak assets in May 2025, WisdomTree Bitcoin Trust (BTCW) with $140.37 million in net assets. Bloomberg Senior ETF analyst Eric Balchunas is quoted regarding market conditions at launch.
What remains unclear
The source does not flag open questions or provide detailed plans about the timing of the liquidation or specific arrangements for investor payouts beyond stating the fund will be liquidated "this month."