The first US spot Bitcoin ETF closure follows three months of net outflows exceeding $4 billion as investor interest wanes.
Hashdex will liquidate its $14.7 million US spot Bitcoin ETF, marking the first shutdown of such a fund since regulators approved a dozen similar products in early 2024. The asset manager cited liquidity concerns and rising operating costs for the decision.
Spot Bitcoin ETFs have faced net outflows for three consecutive months, with June alone seeing redemptions surpass $4 billion. Investor appetite has shifted toward technology stocks and prediction markets, contributing to a 36% decline in the broader crypto market in July.
Bitcoin’s price has fallen to $63,925, down from its October peak of $126,000, as the industry remains mired in a prolonged downturn.