First U.S. spot bitcoin ETF to close as inflows dwindle, investors chase AI returns

Hashdex, a crypto asset manager, is set to close and liquidate its $14.7 million spot bitcoin ETF, marking the first such action in the U.S. market. The decision comes as inflows into these funds have tapered off, with investors shifting their attention to AI-related investments. Bitcoin futures ETFs, including VanEck’s XBTF, have previously closed, but no U.S. spot bitcoin ETF had been liquidated before Hashdex.

The fund's closure is attributed to factors such as the evaluation of assets under management, liquidity, operating costs, investor interest, and its position within the company's product lineup. Flows into these ETFs have dwindled in the past three months, with net outflows reported each month. The funds have seen a combined outflow of $60.5 billion, with BlackRock’s IBIT leading in inflows at $47.08 billion, followed by Fidelity’s FBTC at $9.95 billion.

Grayscale’s GBTC, which converted to a spot bitcoin ETF after operating as a trust, has experienced $27.47 billion in outflows. Hashdex maintains a presence in the U.S. crypto ETF market, managing over $200 million across its remaining U.S.-available products, including the Hashdex Nasdaq Crypto Index US ETF (NCIQ).