One of many early Bitcoin futures ETFs that was transformed to a spot fund after the launch of the New child 9 in 2024 is shutting its doorways.
Hashdex is closing its roughly $14.7 million Hashdex Bitcoin ETF, leaving DEFI holders till NYSE Arca closes on Aug. 17 to promote. Holders who keep previous the cutoff enter a money wind-down as liquidation begins Aug. 18. Their payout will transfer with Bitcoin’s sale value and shutting prices. Hashdex’s Aug. 3 filings additionally differ on when that money ought to arrive.
The liquidation plan closes the door to creation and redemption basket orders after Aug. 17. NYSE Arca buying and selling is scheduled to cease earlier than the Aug. 18 open, when DEFI begins promoting its Bitcoin holdings. The portfolio then shifts towards money and stops monitoring its benchmark. A secondary market after suspension is unsure.
For Hashdex Bitcoin ETF holders, the buying and selling deadline is evident, however the fee calendar is cut up. The plan, Hashdex’s 8-Ok, and a later-filed prospectus complement level to proceeds on or about Aug. 24. The SEC-filed closure announcement provides Aug. 28. Hashdex’s Aug. 3 8-Ok says the dates could change. The official payout timetable stays unsettled.
Every holder’s money quantity will come from property remaining after liabilities and transaction prices are paid or reserved for, together with the prices of promoting Bitcoin. Bitcoin could swing through the liquidation window, and Hashdex warned that the transfer may very well be substantial. The sponsor will cowl the remaining liquidation bills. The filings depart the per-share payout open.
For U.S. federal earnings tax functions, the plan treats the money as a liquidating distribution from a partnership. The consequence will depend on every holder’s circumstances, and Hashdex urged buyers to seek the advice of their very own tax advisers.
Why the Hashdex Bitcoin ETF is closing
The fee stress leaves DEFI holders going through a fund-level wind-down. Hashdex tied the closure to a squeeze between DEFI’s web property and working bills. Earlier than Hashdex’s Aug. 3 closure submitting, the fund’s standing prospectus had warned that prices may turn into unreasonable under $20 million. DEFI reported about $14.7 million on July 30. The liquidation plan says continued operation can be unreasonable or imprudent and leaves the fund’s working consequence undisclosed.
The prospectus lists a 0.25% annual administration price. On the July 30 asset base, that fee involves about $36,750 a 12 months if property keep flat. The determine represents gross administration charges earlier than fund bills.
The Hashdex Bitcoin ETF’s closure is a fund-level choice formed by its personal asset base and bills. Different spot Bitcoin ETFs function at completely different scales and with completely different value constructions.
