US Spot Bitcoin ETFs, Private Credit See Billions of Outflows as Risk Aversion Spreads
Summary
- Large outflows from US spot Bitcoin (BTC) ETFs and the private credit market in the second quarter point to growing risk aversion.
- US-listed spot BTC ETFs posted about $4 billion of net outflows in June and nearly $5 billion in the second quarter as money shifted to expanding AI investment and opportunities such as a potential SpaceX IPO.
- Over the same period, investors requested $15.6 billion in redemptions from the private credit market, raising the possibility that redemption pressure will persist. The report said this signals weaker liquidity and appetite for risk assets, while further energy-market stress could add to pressure on risk assets.
Forecast Trend Report by Period
Large outflows from US spot Bitcoin exchange-traded funds and the private credit market in the second quarter signal that investors are growing more risk-averse.
CoinDesk reported on July 9 that US-listed spot Bitcoin ETFs posted about $4 billion of net outflows in June, bringing total second-quarter outflows to nearly $5 billion. It attributed the shift to new investment opportunities, including increased spending on artificial intelligence and the prospect of a large SpaceX initial public offering.
Citing Fitch Ratings data, the report said investors requested $15.6 billion of redemptions from the private credit market over the same period, with many managers exceeding their quarterly redemption limits. Some unprocessed redemption requests were pushed into the next quarter, indicating redemption pressure may continue.
Bitcoin ETFs and private credit have different structures, but simultaneous outflows from both markets suggest weakening liquidity and demand for risk assets, CoinDesk said. It added that any further disruption in energy markets could create an even more difficult backdrop for risk assets.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.