Private Credit Funds Cap Withdrawals as Bitcoin Tops ₱4,363,985 ($73,000)
As private credit funds face a liquidity crisis, institutional investors are pivoting to Bitcoin. The ₱107.61 trillion ($1.8 trillion) private-credit market is experiencing unprecedented redemption pressure, with blockchain-based alternatives growing 127% since 2023.
Key Takeaway
Private credit's liquidity crisis is pushing institutional money toward Bitcoin as the more liquid alternative.
BlackRock's private-credit fund saw redemption requests hit 1.86 times its 5% cap as investors rushed to exit. Morgan Stanley faced withdrawal demand 2.18 times above its threshold, while Cliffwater's requests reached 2 times its 7% cap and 2.8 times the standard 5% gate.
Blue Owl halted or stretched withdrawals across its funds. JPMorgan marked down private-credit loan portfolios and reduced lending against parts of the market.
Blackstone President Jon Gray blamed the surge on a "constant spin cycle" over recent private credit failures, saying it prompts financial advisors to recommend redemptions. Blackstone's own Bcred fund hit 1.58 times its 5% redemption threshold. The firm responded by lifting its usual cap to 7% and committing ₱23.91 billion ($400 million) from company and employee funds to meet all requests.
Blue Owl co-President Craig Packer disputed reports his firm was halting redemptions, saying the company is "just changing the form, and if anything, we're accelerating redemptions." VanEck Alternative Asset Manager ETF, which tracks private-credit performance, dropped 23% this year.
iShares Bitcoin Trust holds near ₱4.18 trillion ($70 billion) in assets as institutional investors shift from illiquid credit funds to Bitcoin, which held above ₱4,363,985 ($73,000) on March 17, 2026.
This article was written based on reporting from CryptoSlate.
