Billions flowing out of bitcoin ETFs and private credit funds suggest rising market risks

MarketsBillions flowing out of bitcoin ETFs and private credit funds suggest rising market risksRedemption requests in the $2 trillion private credit market surged to $15.6 billion in the second quarter, dwarfing bitcoin ETF outflows.By Omkar Godbole|Edited by Stephen AlpherUpdated Jul 9, 2026, 6:22 p.m. Published Jul 9, 2026, 6:13 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowRedemption 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.If the second quarter was bad for bitcoin exchange-traded funds (ETFs), with record outflows of nearly $5 billion, it was even more brutal for private credit.Investors yanked out $4 billion from U.S.-listed spot bitcoin ETFs, led by BlackRock’s IBIT in June alone, according to data source SoSoValue. The outflow was mainly due to capital rotation into the AI trade and other high-profile opportunities, such as SpaceX’s blockbuster IPO. The market felt the heat as bitcoin's BTC$63,168.47 price fell roughly 14% in the second quarter, dipping below $60,000 to register its third straight quarterly loss. However, that outflow was dwarfed by liquidity stress in the $2 trillion private credit market, where investors requested $15.6 billion in redemptions during Q2 and were only partially satisfied. According to data tracked by Fitch, redemption requests exceeded the standard 5% quarterly cap…

Billions flowing out of bitcoin ETFs and private credit funds suggest rising market risks

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