Hashdex will stop trading its DEFI Bitcoin ETF after the Aug. 17 close, giving investors a final window to exit before the fund is liquidated. The fund, which held about $8.7 million in assets and 134.95 BTC on Aug. 11, will pay out cash from its Bitcoin holdings by Aug. 28. The move follows months of redemptions and a failure to attract meaningful inflows.
A fund that never caught on
DEFI converted from a Bitcoin futures strategy to permit direct Bitcoin holdings on March 27, 2024. But the fund never gained traction. Since the conversion, it has recorded only six inflow days and three outflow days. In 2025, it issued $2.14 million of shares but redeemed $4.61 million, leaving about $11.90 million in net assets at year-end. The first quarter of 2026 saw no creations or redemptions at all.
The numbers tell the story. On Aug. 7, the fund held $11.77 million and 180.26 BTC. By Aug. 11, that had dropped to $8.7 million and 134.95 BTC. Shares outstanding fell from 160,000 to 120,000 over three days — a 25% decline as investors redeemed ahead of the shutdown.
What investors need to know
Anyone still holding DEFI after the Aug. 17 close will receive cash from the liquidation of its Bitcoin holdings. The payout, expected by Aug. 28, will reflect the fund's net asset value after Bitcoin price movements, transaction costs, and other closing expenses. That means the final amount could differ from the current NAV.
Hashdex has not said whether it will offer a similar product in the future. The company continues to manage more than $200 million in products available to US investors.
The broader ETF market
While DEFI winds down, other US spot Bitcoin ETFs are seeing heavy inflows. Between Aug. 3 and Aug. 7, the group attracted $865.3 million in net inflows, according to Farside Investors data. BlackRock's IBIT accounted for $693.5 million, or 80.1% of that total. The five-day inflow streak ended Aug. 10, when the group recorded $144.6 million in aggregate outflows.
The contrast is stark. DEFI's annualized gross expense ratio fell to 0.25% from 0.56%, and management fees dropped to $6,453 from $20,385 a year earlier. But lower costs didn't bring in assets.
Investors have until the Aug. 17 close to sell their shares on the exchange. After that, the liquidation process begins, with cash payouts expected by Aug. 28. For Hashdex, the focus shifts to its remaining US products, which hold more than $200 million in assets.
