Hashdex has begun liquidating its Hashdex Bitcoin ETF, ticker DEFI, the first US spot Bitcoin ETF to close since the category launched in 2024. The fund stopped trading on NYSE Arca on August 17, with cash distributions from the liquidation expected between August 24 and August 28. Hashdex cited low assets under management, high operating costs and an asset base of about $14.7 million. The closure does not indicate broad failure in the spot Bitcoin ETF market, where BlackRock, Fidelity and other major issuers continue to attract significant capital. Instead, it highlights consolidation in an increasingly competitive category, where larger funds benefit from stronger distribution, tighter spreads, lower fees and deeper liquidity. Investors will be watching whether other low-AUM funds follow, potentially reducing the number of products while concentrating liquidity among those that remain.