According to @business, derivatives enabling investors to bet against Meta Platforms’ bonds began actively trading for the first time this week as money managers and banks hedge exposure to an industry piling on debt to fund AI investments (source: Bloomberg/@business). This provides a direct tool for institutions to hedge Meta credit risk amid AI-related corporate borrowing, with the instrument already seeing active trading this week (source: Bloomberg/@business). The source did not mention any direct cryptocurrency market impact (source: Bloomberg/@business).

According to Eric Balchunas, Simplify has filed for a Private Credit strategy ETF that will allocate 80% of assets to Business Development Companies (BDCs) and Closed-End Funds (CEFs), with the remaining 20% used for credit derivatives hedging via total return swaps (source: Eric Balchunas, Twitter). This balanced exposure offers traders an accessible vehicle to tap institutional-grade private credit yields while managing risk through sophisticated derivatives, which could attract both yield-seeking investors and crypto market participants aiming for diversification. The ETF structure may increase liquidity and transparency in private credit, potentially influencing correlated DeFi lending protocols and tokenized credit products.