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Hashdex liquidates $14.7 million DEFI Bitcoin ETF as trading ends Aug. 17
The DEFI fund will pay out shareholders in cash after liquidation, with dates in company disclosures pointing to a distribution around Aug. 24 to Aug. 28 depending on the document.
Hashdex has started liquidating its DEFI Bitcoin ETF, after NYSE Arca trading and the fund’s creation orders ended on Aug. 17. The asset manager said the remaining shareholders will receive a cash payout rather than an exchange exit, following Hashdex’s Aug. 3 announcement that it would close the product and wind up operations.
Hashdex reported approximately $14.7 million in DEFI assets under management as of July 30. In its SEC liquidation plan, the sponsor said it was unreasonable and imprudent to continue the fund over the long term because DEFI’s net assets were too small relative to its operating expenses.
Hashdex said investors who kept DEFI past Aug. 17 no longer have NYSE Arca liquidity, and the cash distribution will be based on the fund’s net asset value during the liquidation period. The payment amount was described as not fixed, because it will reflect closing and transaction costs plus Bitcoin price movements while the remaining holdings are sold, which the sponsor warned could be substantial.
While DEFI was winding down, other US Bitcoin ETF flows were positive on Aug. 18, with Farside Investors showing a provisional $189.3 million in net inflows across US Bitcoin products, led by BlackRock’s iShares Bitcoin Trust (IBIT) at $143.6 million. Hashdex’s disclosed payment timing was inconsistent across filings, with public materials pointing to a distribution on or about Aug. 28 and the liquidation plan citing on or about Aug. 24.
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