The Hashdex Bitcoin ETF, trading under the ticker symbol DEFI, offers investors a unique avenue to gain exposure to Bitcoin's price movements. Unlike many traditional exchange-traded funds (ETFs), this product is not registered under the Investment Company Act of 1940. This means it operates under a different regulatory framework, which is a critical detail for any potential investor to understand. This guide provides a detailed overview of the fund's structure, performance, and key characteristics.
Understanding the Hashdex Bitcoin ETF (DEFI)
The Hashdex Bitcoin ETF is designed to track the performance of Bitcoin. It achieves this by primarily holding physical bitcoin (spot bitcoin) and, to a lesser extent, Bitcoin futures contracts. The fund’s investment objective is for its shares' Net Asset Value (NAV) to reflect the daily changes in the price of its benchmark index.
Key Fund Details
- Primary Exchange: NYSE Arca
- Ticker Symbol: DEFI
- Benchmark Index: Nasdaq Bitcoin Reference Price - Settlement (NQBTCS)
- Options: Not currently available for trading.
The NQBTCS index is calculated to represent a daily settlement price for Bitcoin. It aggregates data from multiple cryptocurrency trading venues to determine a robust and reliable average spot price, published once per business day.
Fund Management and Structure
- Sponsor: Tidal Investments LLC
- Administrator: Tidal ETF Services LLC
- Marketing Agent: Foreside Fund Services, LLC
It is essential to note that the fund is not subject to the same regulatory requirements as typical investment companies. This structure directly influences its risk profile and operational mechanics.
DEFI's Investment Strategy and Evolution
The current DEFI ETF is the result of a merger. It succeeded the Hashdex Bitcoin Futures ETF, which commenced operations on September 15, 2022. This predecessor fund initially invested solely in Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME).
The merger was completed on January 3, 2024. Then, on March 27, 2024, the fund underwent a significant strategic shift. Its objective was revised to allow for direct holdings of spot bitcoin.
Current Strategy (Post-March 27, 2024):
Under normal market conditions, the fund’s policy is to maximize its holdings of physical bitcoin. It is expected that at least 95% of the fund’s assets will be invested in spot bitcoin. The remaining portion of the assets (up to 5%) may be invested in:
- CME-traded bitcoin futures contracts
- Cash and cash equivalents
This shift from a futures-only to a spot-bitcoin-focused strategy is a fundamental aspect of the modern DEFI ETF. For a deeper analysis of how spot prices influence the market, you can 👉 explore real-time market analysis tools.
Performance Overview
As of June 30, 2025, the DEFI ETF has demonstrated substantial growth over various periods, reflecting Bitcoin's bullish market trends. It is crucial to remember that past performance is not indicative of future results.
| Period | DEFI (Market Price) | DEFI (NAV) |
|---|---|---|
| 1 Month | +1.98% | +2.99% |
| 3 Month | +30.44% | +30.19% |
| Year-to-Date (YTD) | +14.61% | +14.98% |
| 1 Year | +77.19% | +78.09% |
| Since Inception* | +386.95% | +387.50% |
*Performance data from inception (September 15, 2022) includes the period of the Predecessor Fund (the futures-only strategy).
Key Performance Notes:
- Market Price vs. NAV: The market price is the last traded price on the exchange, while the NAV represents the per-share value of the fund's underlying assets. They can differ slightly, leading to premiums or discounts.
- Investment Fluctuation: An investment in DEFI is subject to the volatility of the Bitcoin market. This means the value of shares can fluctuate widely, and you may gain or lose money.
Understanding Premiums and Discounts
A common characteristic of ETFs is that their market price can trade above (premium) or below (discount) their NAV. This occurs due to supply and demand dynamics on the exchange throughout the trading day.
Recent Snapshot (As of July 3, 2025):
- NAV: $124.39
- Market Price: $123.99
- Difference: -$0.40
- Premium/Discount: -0.31%
The fund also publishes historical data on how often it has traded at a premium, discount, or at its NAV. This information can help investors understand typical trading patterns.
Key Metrics for Investors
Here are some essential statistics for the Hashdex Bitcoin ETF as of recent dates:
- Net Asset Value (NAV): $124.39 (July 3, 2025)
- Closing Price: $123.99 (July 3, 2025)
- Shares Outstanding: 120,000 (July 7, 2025)
- Total Net Assets: $14.93 Million (July 7, 2025)
Frequently Asked Questions
What is the difference between DEFI and a standard Bitcoin ETF?
The primary difference is regulatory. DEFI is not registered under the Investment Company Act of 1940, which governs most ETFs. This means it has a different legal structure and may not offer all the same investor protections as a 1940 Act fund.
Does the DEFI ETF actually hold Bitcoin?
Yes. Since March 27, 2024, the fund's strategy has been to hold physical spot bitcoin for at least 95% of its assets. This is a shift from its earlier strategy of holding only bitcoin futures contracts.
What does the ticker symbol DEFI stand for?
While "DeFi" commonly stands for "Decentralized Finance" in the crypto world, in this context, DEFI is simply the ticker symbol for this specific ETF and is not directly related to decentralized finance protocols.
How can I buy shares of the Hashdex Bitcoin ETF?
Shares of DEFI trade on the NYSE Arca exchange like a common stock. You can buy and sell them through most standard brokerage accounts using the ticker symbol DEFI.
What are the main risks of investing in DEFI?
The main risks are directly tied to Bitcoin's volatility, regulatory changes in the cryptocurrency space, the potential for premiums/discounts to the NAV, and the unique non-1940 Act structure of the fund.
Where can I find more official documents on this ETF?
Official documents, including the prospectus and annual reports, are typically available on the sponsor's website (Tidal Investments LLC) or through the SEC's EDGAR database. These documents contain vital risk disclosures and operational details. To 👉 get advanced investment methods and insights, always ensure you are using official sources.