First U.S. spot bitcoin ETF to close as inflows dwindle, investors chase AI returns
The Hashdex Bitcoin ETF is set to close as investor interest shifts toward AI-related investments, marking the first liquidation of a U.S. spot bitcoin fund. Data shows that while the broader crypto ETF market remains active, smaller funds are struggling to maintain inflows compared to high-performing AI tech stocks.
Why it matters
The closure reflects a broader market trend where capital is increasingly flowing into AI-focused assets at the expense of niche cryptocurrency investment products.
Bitcoin futures ETFs have closed before, including VanEck’s XBTF in 2024, but no U.S. fund holding bitcoin directly appears to have previously been liquidated.
Hashdex cited an evaluation of the fund’s assets under management, liquidity, operating costs, investor interest and its place within the company’s broader product lineup when announcing the closure.
Flows into the ETFs, which were first approved in January 2024, have dwindled as investors chased the better returns offered by AI-related investments. Taken as a group, the funds have seen net outflows in each of the past three months, according to data from SoSoValue.
“Much of the market views the opportunity cost of holding BTC as too high while anything AI-related soars,” K33 Research head Vetle Lunde wrote in a June report .
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