Hashdex to Shut Down Bitcoin ETF; Investors Must Sell by Aug. 17

Hashdex is winding down its roughly $14.7 million Hashdex Bitcoin ETF (ticker: DEFI), one of the earlier bitcoin futures ETFs later converted into a spot product following the 2024 wave of spot launches. Investors can trade out of the fund until NYSE Arca closes on Aug. 17. Those who remain in the fund past that deadline will be moved into a cash liquidation process beginning Aug. 18. Hashdex will stop accepting creation and redemption basket orders after Aug. 17, and NYSE Arca trading is expected to halt before the market opens Aug. 18, when the fund begins selling its bitcoin holdings. As the liquidation proceeds, the portfolio shifts toward cash and will no longer track its benchmark. Whether any secondary-market trading occurs after suspension is unclear. Payout timing remains uncertain. Hashdex's liquidation plan, its Form 8-K and a subsequently filed prospectus supplement indicate proceeds are expected on or about Aug. 24. A separate SEC-filed closure notice points to Aug. 28. Hashdex's Aug. 3 8-K also notes the dates may change. The cash each holder receives will depend on the net assets remaining after liabilities and transaction costs are paid or reserved for, including the costs of selling bitcoin. Hashdex warned bitcoin could move materially during the liquidation window, affecting proceeds. The sponsor said it will cover remaining liquidation expenses, while the filings do not specify a per-share payout. For U.S. federal income tax purposes, the plan treats the cash payment as a liquidating distribution from a partnership. Hashdex said outcomes depend on each investor's situation and urged holders to consult their own tax advisers. Hashdex attributed the closure to cost pressure created by the gap between DEFI's net assets and operating expenses. Prior disclosures had warned that expenses could become unreasonable if assets fell below $20 million. DEFI reported about $14.7 million in net assets as of July 30. The prospectus lists a 0.25% annual management fee; at the July 30 asset level, that equates to roughly $36,750 per year if assets are unchanged, before other fund expenses. Hashdex said the decision is specific to DEFI's asset base and cost structure, noting that other spot bitcoin ETFs operate at different scales and with different expense profiles.