Summary
- It reported that BlackRock’s roughly $26 billion private fund has begun restricting redemptions as redemption requests increased.
- It said analysis suggests that turmoil in the global private-fund market could spread to the digital-asset (cryptocurrency) market.
- It explained that deleveraging from private credit funds unwinding positions could lead to disorderly liquidations of risk assets such as Bitcoin and a second-round shock.
Forecast Trend Report by Period
As BlackRock’s large private fund moved to limit redemptions amid a rise in redemption requests, analysis suggests that jitters in the global private-fund market could spread to the digital-asset (cryptocurrency) market.
According to crypto-focused media outlet CoinDesk on the 6th (local time), BlackRock’s private fund, worth about $26 billion, recently began restricting some redemptions as redemption requests increased.
Andreja Cobeljic, head of derivatives trading at Swiss digital-asset bank AMINA, said, “If private credit funds unwind positions under redemption pressure, deleveraging could occur across broader asset markets.”
Cobeljic added, “This process could also have spillover effects on digital-asset markets such as Bitcoin (BTC),” explaining that “particularly for risk assets, disorderly liquidations could lead to a second-round shock.”
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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