Hashdex Liquidates Bitcoin ETF, Selling 225 BTC Amid Low Liquidity

Woofun AI reports that Hashdex is initiating the liquidation of its spot Bitcoin ETF, trading under the ticker DEFI on NYSE Arca, driven by insufficient trading liquidity and unsustainable operating costs.

The fund’s financial trajectory reveals a persistent struggle with scale; official data from early August 2026 shows 200,000 outstanding shares managing only $14.25 million in net assets. Originally launched in September 2022 as a futures-backed vehicle, the product pivoted to a spot model in March 2024 when Bitcoin prices exceeded $73,000. Despite this strategic shift, assets peaked at $17.54 million on May 9, 2025, according to SoSoValue, before declining. The fund now holds 225 BTC, which will be sold to distribute cash to shareholders.

Woofun AI data shows. Market dynamics further illustrate the competitive disadvantage faced by the issuer. Eric Balchunas of Bloomberg noted on March 27, 2024, that while Hashdex entered the United States market months after the initial ten approved competitors, it could capture flows if fees remained competitive.

However, the gap has widened significantly; at Friday’s close, WisdomTree Bitcoin Trust (BTCW) reported $140.37 million in accumulated net assets, dwarfing Hashdex’s holdings.

Structurally, the lack of commercial volume rendered the operating model unviable. Analysts indicate that fixed administrative costs on NYSE Arca erode profitability for crypto products that fail to cross the $100 million threshold in raised capital. To mitigate market impact, the sale of the 225 BTC reserve will be executed gradually over the coming weeks. The resulting proceeds in U.S. dollars will be deposited into registered shareholders’ brokerage accounts before the end of the current month.

This exit narrows the selection of direct Bitcoin exchange-traded instruments available in regulated U.S. markets. Hashdex will continue operating other global index products, which remain unaffected by this specific liquidation process.