Hashdex is shutting down its Bitcoin ETF, leaving investors with just days to sell before a blind, unpredictable cash out
The $14.7 million Bitcoin ETF will liquidate from Aug. 18, while Hashdex's filings split on the payout date.
Quick Take
- DEFI holders can sell through Aug. 17 before Hashdex starts liquidating the $14.7 million Bitcoin ETF.
- Filings point to Aug. 24 or Aug. 28 for cash distributions, leaving the official payout date unsettled.
- Bitcoin's sale price and closing costs will determine each holder's cash amount during the wind-down.
One of the early Bitcoin futures ETFs that was converted to a spot fund after the launch of the Newborn Nine in 2024 is shutting its doors.
Hashdex is closing its approximately $14.7 million Hashdex Bitcoin ETF, leaving DEFI holders until NYSE Arca closes on Aug. 17 to sell. Holders who stay past the cutoff enter a cash wind-down as liquidation begins Aug. 18. Their payout will move with Bitcoin's sale price and closing costs. Hashdex's Aug. 3 filings also differ on when that cash should arrive.
The liquidation plan closes the door to creation and redemption basket orders after Aug. 17. NYSE Arca trading is scheduled to stop before the Aug. 18 open, when DEFI begins selling its Bitcoin holdings. The portfolio then shifts toward cash and stops tracking its benchmark. A secondary market after suspension is uncertain.
For Hashdex Bitcoin ETF holders, the trading deadline is clear, but the payment calendar is split. The plan, Hashdex's 8-K, and a later-filed prospectus supplement point to proceeds on or about Aug. 24. The SEC-filed closure announcement gives Aug. 28. Hashdex's Aug. 3 8-K says the dates may change. The official payout timetable remains unsettled.
Each holder's cash amount will come from assets remaining after liabilities and transaction costs are paid or reserved for, including the costs of selling Bitcoin. Bitcoin may swing during the liquidation window, and Hashdex warned that the move could be substantial. The sponsor will cover the remaining liquidation expenses. The filings leave the per-share payout open.
For U.S. federal income tax purposes, the plan treats the cash as a liquidating distribution from a partnership. The result depends on each holder's circumstances, and Hashdex urged investors to consult their own tax advisers.
Why the Hashdex Bitcoin ETF is closing
The cost pressure leaves DEFI holders facing a fund-level wind-down. Hashdex tied the closure to a squeeze between DEFI's net assets and operating expenses. Before Hashdex's Aug. 3 closure filing, the fund's standing prospectus had warned that costs could become unreasonable below $20 million. DEFI reported about $14.7 million on July 30. The liquidation plan says continued operation would be unreasonable or imprudent and leaves the fund's operating result undisclosed.
The prospectus lists a 0.25% annual management fee. On the July 30 asset base, that rate comes to about $36,750 a year if assets stay flat. The figure represents gross management fees before fund expenses.
The Hashdex Bitcoin ETF's closure is a fund-level decision shaped by its own asset base and expenses. Other spot Bitcoin ETFs operate at different scales and with different cost structures.
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