Hashdex will discontinue trading its Bitcoin ETF (DEFI) on August 17 prior to liquidating the fund and delisting its shares.
Following August 17, the fund will discontinue accepting creation orders. Shares remain to be traded until the last trading day, but prices may depend on the fund’s net asset value.
Hashdex noted the closure was triggered by factors including assets under management, trading cash flow capacity, operating costs, and investor demand. As of July 30, DEFI held approximately $14.7 million, making it one of the smaller US spot Bitcoin ETFs.
DEFI announced a net asset value of roughly $71.32 per share and a near price over $71.15 on July 31. At least 95% of its investment holdings were invested in spot Bitcoin.
DEFI Fund Liquidation
Investors who have DEFI shares following the final trading day will receive cash and not in Bitcoin, as the fund liquidates its assets and lessens related costs and liabilities.
Shareholders are also expected to receive cash distributions on August 28, with the final amount identified by Bitcoin’s price during the liquidation process.
The liquidation could influence taxable events for US shareholders, depending on their tax conditions.
Shareholders who exit prior to August 17 will be paid the current market price, while trading situations may experience price swings prior to the fund’s delisting.
DEFI Exits, NCIQ Remains
In March 2024, DEFI joined the US spot Bitcoin ETF market by converting its future-based fund to spot Bitcoin ETH after the SEC’s approval of the first spot Bitcoin ETFs in January.
DEFI entered the market after larger competitors had earned scales, restricting its liquidity despite a 0.25% management fee.
The end of DEFI does not reflect Hashdex’s exit from the US crypto ETF market. Its Hashdex Nasdaq CME Crypto Index ETF (NCIQ) is still active, managing approximately $206.82 million in net assets as of July 31.
NCIQ monitors a basket of significant cryptocurrencies adjusted by market capitalization, with Bitcoin representing 78% and Ethereum 12.2% of the investment holding as of July 27.
Also, NCIQ’s management fee was lessened to 0.25% from 0.50% in March, after its January name change while maintaining the NCIQ ticker.
DEFI Exit Trading Timeframe
DEFI shareholders experience a restricted liquidation timeframe, with August 17 scheduled as the final trading day on NYSE Arca and the deadline for new creation orders. Hashdex will liquidate the investment holding and distribute expected cash proceeds on August 28, 2026.
Shifts in Bitcoin’s price during liquidation may influence the final payout, and remaining shareholders will have their DEFI shares ceased after receiving the cash distribution.
The exit applies only to DEFI, with Hashdex’s other crypto features unaffected.
