Billions flowing out of bitcoin ETFs and private credit funds suggest rising market risks
Redemption requests in the $2 trillion private credit market surged to $15.6 billion in the second quarter, dwarfing bitcoin ETF outflows.
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Summary
- Redemption requests in the $2 trillion private credit market surged to $15.6 billion in the second quarter, breaching standard 5% quarterly caps at most business development companies and leaving many investors only partly paid.
- Investors pulled nearly $5 billion from U.S.-listed spot bitcoin ETFs in the second quarter, contributing to a roughly 14% drop in bitcoin’s price and its third straight quarterly loss.
- The simultaneous rush for liquidity in bitcoin ETFs and private credit, alongside a depleted U.S. strategic petroleum reserve, is stoking concerns that financial and physical buffers against risk are eroding across markets.
