In the days ahead, BlackRock is apparently going to inform 600 workers in the hopes that its proposal for a spot Bitcoin ETF would be approved.
BlackRock, the biggest asset management in the world, is apparently going to cut about 3% of its employees worldwide in the next few days.
This occurs in the context of BlackRock anticipating positive news regarding its spot Bitcoin exchange-traded fund (ETF) application from the US Securities and Exchange Commission (SEC).
A Fox Business story on January 6th, which cited persons familiar with the subject, stated that as part of regular internal adjustments, about 600 staff will be laid off. The past 12 months’ worth of employee performance will be taken into account.
Furthermore, it has been claimed that BlackRock expects their application for a Bitcoin ETF to be approved on January 10, which is also the day the SEC has to decide whether to accept or reject the ARK 21 Shares spot Bitcoin ETF.
But BlackRock’s application for a Bitcoin ETF isn’t due to the SEC until January 15th. This follows a recent surge in amendment forms that identify Bitcoin ETF candidates filed with the SEC. BlackRock filed a 19b-4 revision for their spot BTC ETF registration on January 5.
The asset managers Valkyrie, Grayscale, Bitwise, Hashdex, ARK 21Shares, Invesco Galaxy, Fidelity, Franklin Templeton, VanEck, and WisdomTree also filed on the same day as the other asset managers.
Although submitting S-1 papers is a must for U.S. exchanges to list shares of investment securities with direct exposure to cryptocurrency, these files are one of the last steps in the SEC clearance process.
In the meanwhile, it was revealed in December 2023 that BlackRock has modified its Bitcoin ETF application to make Wall Street banks’ participation easier by allowing them to create new fund shares using cash rather than merely cryptocurrency.
Major banks will be able to participate in the fund as authorised participants thanks to the in-kind redemption methodology. They will be able to get around limitations that prohibit them from directly storing Bitcoin or other cryptocurrencies on their balance sheets.