Briefly
- Hashdex will shut and liquidate its Bitcoin ETF, which manages about $14.7 million.
- Buying and selling ends Aug. 17, with money distributions anticipated round Aug. 28.
- The closure follows greater than two years of fierce competitors within the U.S. spot Bitcoin ETF market.
Hashdex is shutting down its U.S. spot Bitcoin exchange-traded fund after it amassed simply $14.7 million in property below administration.
In accordance with a submitting with the U.S. Securities and Alternate Fee on Monday, the crypto asset supervisor’s Hashdex Bitcoin ETF (NYSE Arca: DEFI) will cease buying and selling after the market closes on Aug. 17 earlier than being delisted. Shareholders who nonetheless personal the fund at that time are anticipated to obtain money distributions on or about Aug. 28 after the fund sells its remaining Bitcoin holdings.
“Following the Final Buying and selling Day, the Fund will liquidate its remaining Bitcoin holdings,” the submitting stated. “The Fund will not pursue its said funding goal and won’t interact in any enterprise actions aside from winding up its enterprise and affairs, preserving the worth of its property, paying its liabilities, and distributing its remaining property to shareholders.”
Hashdex stated it evaluated elements together with property below administration, buying and selling liquidity, working prices, investor curiosity, and the way the fund match inside its broader product lineup earlier than deciding to liquidate. The agency stated it continues to handle greater than $200 million throughout funding merchandise accessible to U.S. buyers.
An exchange-traded fund, or ETF, lets buyers achieve publicity to an asset, on this case Bitcoin, by shopping for shares that commerce on a inventory alternate. As a result of the worth of the ETF is correlated to the worth of Bitcoin, the ultimate payout might differ from the fund’s present worth as a result of the worth might change whereas the property are being bought.
The closure comes greater than two years after Hashdex entered the U.S. spot Bitcoin ETF market, following the SEC’s landmark approval of the primary spot Bitcoin ETFs in January 2024.
In March 2024, the agency transformed its Bitcoin futures ETF, which had traded below the DEFI ticker since September 2022, right into a spot Bitcoin ETF in August 2023, holding roughly 5,500 Bitcoin.
The corporate later sought to broaden its U.S. choices with a mixed Bitcoin and Ethereum ETF, however the SEC delayed a call on the proposal in August 2024.
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