Bitcoin Spot ETF, First 'Delisting' in the US...225.58 BTC Forced Sale on August 17?

▲ Bitcoin (BTC), Bear Market/AI Generated Image

The first closure has occurred in the US Bitcoin (BTC) spot ETF market.

According to crypto media outlet BeInCrypto on August 5 (local time), Hashdex will terminate trading of its Bitcoin spot ETF DEFI on August 17. DEFI will subsequently be delisted from NYSE Arca. After completing the liquidation process, investors are expected to receive cash around August 28.

The closure was due to insufficient assets under management and low fee income. DEFI's assets only amounted to $14.56 million, and its management fee rate was 0.25%. Annual fee income was around $26,000. Total fee income for 2025 was $47,521, but quarterly income in early 2026 decreased to $6,453.

Investors can sell their holdings until August 17. After trading ends, Hashdex will sell the 225.58 BTC held by the fund. Investors will be paid an amount proportional to their equity, excluding liquidation costs. However, DEFI's trading volume on August 4 was only 131 shares, and the trading value was $9,560, indicating liquidity concerns even during the selling process.

There was no significant issue with DEFI's tracking performance itself. The tracking error with Bitcoin's price was only 0.02%. Assets under management also increased by 58%, from $9.22 million on March 31 to $14.56 million on August 4. The number of shares issued also increased from 120,000 to 200,000, but it failed to secure the necessary scale to maintain the fund.

DEFI launched as a futures ETF in 2022 and converted to a product that directly holds spot Bitcoin in March 2024. Over two years, total inflows only amounted to $4.27 million. Hashdex continues to operate other products in the US with over $200 million, so the closure of DEFI does not signify an exit from the US market.

[Article Key Summary]

-Hashdex's Bitcoin spot ETF DEFI will be the first US product to be closed.

-DEFI trading will end on August 17, and investors are expected to receive cash around August 28.

-Assets under management were $14.56 million, but quarterly fee income only amounted to $6,453, leading to the product's failure to sustain itself.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*