BlackRock, the world’s largest asset manager, is set to reduce its global workforce by approximately 3% in the coming days, according to reports.
This decision coincides with BlackRock’s optimism regarding its spot Bitcoin exchange-traded fund (ETF) application pending approval from the United States Securities and Exchange Commission (SEC).
Sources familiar with the matter have informed Fox Business, as of January 6th, that BlackRock intends to lay off roughly 600 employees as part of its routine internal adjustments, with decisions based on employee performance evaluations from the past 12 months.
BlackRock anticipates that the SEC will approve its Bitcoin ETF application on January 10th, which also marks the SEC’s deadline for deciding on the ARK 21 Shares spot Bitcoin ETF.
However, it’s important to note that the SEC’s official deadline for BlackRock’s application isn’t until January 15th.
This development follows a flurry of amendment forms recently filed with the SEC by spot Bitcoin ETF applicants.
BlackRock’s submission coincided with those of other asset managers, including Valkyrie, Grayscale, Bitwise, Hashdex, ARK 21Shares, Invesco Galaxy, Fidelity, Franklin Templeton, VanEck, and WisdomTree.
READ MORE: Grayscale in Talks with JPMorgan and Goldman Sachs for Proposed Spot Bitcoin ETF Partnership
These filings represent one of the final steps in the SEC approval process, allowing U.S. exchanges to list shares of investment securities directly tied to cryptocurrency.
Notably, in December 2023, Cointelegraph reported that BlackRock had made adjustments to its Bitcoin ETF application with the goal of increasing Wall Street banks’ participation.
They achieved this by introducing new shares within the fund that can be purchased with cash, rather than just cryptocurrency.
This in-kind redemption model allows major banks to act as authorized participants for the fund, thereby bypassing restrictions that previously prevented them from holding Bitcoin or crypto directly on their balance sheets.
In summary, BlackRock is streamlining its workforce as it awaits a potential SEC approval for its Bitcoin ETF application.
This move aligns with broader efforts to make cryptocurrency investments more accessible to traditional financial institutions, potentially opening up new avenues for institutional participation in the crypto market.
Discover the Crypto Intelligence Blockchain Council
