Hashdex, a cryptocurrency asset management firm, has announced the discontinuation of its Bitcoin spot exchange-traded fund (ETF) listed on the U.S. stock market. This marks the first such termination since the recent wave of Bitcoin spot ETF launches in the U.S.
On Monday, Hashdex stated that after a thorough evaluation of the ETF’s trading performance, operational costs, and investor interest, they have decided to cease the fund’s operations this month. Investors in the ETF will receive cash settlements.
Hashdex’s Bitcoin spot ETF, which traded under the ticker DEFI on the NYSE Arca, managed approximately 14.3 million USD.
The ETF made its market debut in March 2024, following the Securities and Exchange Commission’s (SEC) landmark approval of Bitcoin spot ETFs in January of the same year. It was a conversion of a Bitcoin futures ETF that Hashdex had initially launched in 2022.
While there were initial expectations of attracting significant investor interest, the fund struggled to compete with industry giants like BlackRock, which had already established a strong presence in the market.
As a result, Hashdex’s ETF became the smallest Bitcoin spot ETF by assets under management among those currently listed on U.S. exchanges.
Market analysts suggest that the Bitcoin spot ETF landscape is experiencing a growing divide between major asset managers and their smaller counterparts.