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.