BlackRock has officially triggered withdrawal limits on its HPS Corporate Lending Fund (HLEND) after redemption requests nearly doubled the allowed quarterly cap. The firm limited withdrawals to just 5% of shares, approximately $620 million, despite receiving redemption requests totaling 9.3%. Following the announcement, BlackRock (BLK) shares plummeted 7%, reaching their lowest level since May. This move intensifies concerns over stability within the $3.5 trillion private credit market and its ongoing spillover into digital assets. The liquidity crunch continues to pressure major cryptocurrencies like BTC and ETH, as well as DeFi protocols, due to heightened risk aversion. Investors remain cautious as the gap between redemption demands and available liquidity signals broader systemic stress across interconnected financial ecosystems.
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