Hashdex Bitcoin ETF to Shut Down Citing Low Liquidity

BitcoinWorld Hashdex Bitcoin ETF to Shut Down Citing Low Liquidity The Hashdex Bitcoin ETF is set to shut down after failing to attract sufficient liquidity, according to an official announcement.

The fund, which traded under the ticker DEFI, will cease operations and return capital to shareholders, marking a notable exit from the competitive U.S. spot Bitcoin ETF market. Why Is the Hashdex Bitcoin ETF Closing?

The primary reason cited is persistently low liquidity, which made the fund economically unviable. Despite the broader approval of spot Bitcoin ETFs in January 2024, Hashdex’s product struggled to gain traction compared to larger issuers like BlackRock and Fidelity.

The fund’s assets under management remained minimal, and trading volumes were insufficient to cover operational costs. According to the filing, the fund will stop accepting creations and redemptions, and shares will be delisted from the exchange.