Overview
- Hashdex announced that DEFI will stop trading on NYSE Arca after the close on Aug. 17 and will stop accepting creation orders that day before beginning an on-market sale of the fund’s holdings.
- The fund held roughly $14.7 million in net assets and about 225 BTC as of July 30, a scale Hashdex said was too small to cover ongoing expenses and support active trading.
- Hashdex will convert DEFI’s Bitcoin into cash and expects to distribute liquidating payments to remaining shareholders around Aug. 28 instead of transferring Bitcoin or moving shares into another product.
- The closure highlights winner-take-most dynamics in the U.S. spot Bitcoin ETF market, where very large funds have captured the bulk of inflows and left smaller entrants with thin liquidity and wide bid-ask spreads.
- U.S. investors who hold DEFI may face taxable events because the cash distribution will likely be treated as a taxable disposal depending on individual account type and cost basis.