Others have taken a more macro view. Strive CEO Jack Mallers, among others, described the Bitcoin selloff as a warning of a macro-fiduciary liquidity crisis. Bitcoin has a history of acting early and aggressively on liquidity changes and is often considered one of the assets most sensitive to changes in money supply growth, Treasury operations, and overall funding conditions.
Average requests increased to 10.3% of shares from 9.7% in Q1, but vary widely (1.3% to 38.1% for Blue Owl’s OTIC). Many requests followed from investors which had only been partially satisfied in the last quarter. New inflows fell by around 56% on average, so most funds saw net outflows of around 3% of the previous quarter’s net asset value.
Fitch therefore expects a continuation of repurchases in the coming months.
“With BDCs capping buybacks at 5% per quarter, unmet demand will result in persistently high buybacks for many companies in the coming quarters,” rating agency Fitch warned, the ratings agency said.
Same story but different structures
Bitcoin ETFs are liquid exchange-traded vehicles, where outflows have a direct impact on the spot price of BTC. Private credit BDCs are the opposite: illiquid, long-duration lending vehicles with built-in quarterly gates.
Still, the fact that investors rushed out of both markets at the same time speaks to greater caution about liquidity and risk appetite. Amid all this, energy markets continue to send signals of risk aversion, with U.S. strategic oil reserves falling to their lowest level since 1983. So if the energy market remains disrupted, the government now has much less room to flood the market with oil and keep prices low.
