Crypto
Home›Crypto›Market Structure›Hashdex to liquidate its Bitcoin ETF after Aug. 17 tra…
Hashdex to liquidate its Bitcoin ETF after Aug. 17 trading cutoff
The roughly $14.7 million ETF will stop tracking its benchmark as it shifts from Bitcoin to cash, with payouts tied to the fund’s Bitcoin sale price minus liquidation costs.
Hashdex is shutting its Hashdex Bitcoin ETF, an early Bitcoin futures ETF that was converted to a spot fund, and the liquidation process starts after the NYSE Arca closes on Aug. 17, according to CryptoSlate. Trading is scheduled to stop before the Aug. 18 open, when the fund begins selling its Bitcoin holdings and transitions toward cash.
Holders who stay past the cutoff will enter a cash wind-down. The payout will move with Bitcoin’s sale price and the impact of closing and liquidation costs, and after suspension there is uncertainty around whether a secondary market will exist.
Hashdex’s filings show timing differences for the cash payments, with the liquidation plan, a Hashdex 8-K, and a later-filed prospectus supplement pointing to proceeds on or about Aug. 24, while the SEC-filed closure announcement lists Aug. 28. Hashdex also disclosed that dates may change, and warned that Bitcoin price swings during the liquidation window could be substantial.
The closure plan also indicates the ETF will stop creation and redemption basket orders after Aug. 17, and the fund’s portfolio will stop tracking its benchmark. Hashdex tied the wind-down to a squeeze between the fund’s net assets and operating expenses, with a standing warning that costs could become unreasonable below $20 million, and the prospectus citing a 0.25% annual management fee, plus liquidation expenses covered by the sponsor.
Latest closeBitcoin $64,436.01 ▲1.5%