BlackRock prepares workforce Downsizing as hoping for the approval of Bitcoin ETF this wednesday. According to Blackrock, this is a strategic decision that will align with the awaiting spot ETF decision.
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With Bitcoin ETF’s possible approval, Blackrock decides to reduce the workforce
BlackRock has decided to reduce its global workforce by about 3%, as reported recently. This strategic decision aligns with BlackRock’s optimism surrounding its pending spot Bitcoin exchange-traded fund (ETF) application awaiting approval from the U.S. Securities and Exchange Commission (SEC).
Reports from sources familiar with the matter, dated January 6th, suggest that approximately 600 employees will be laid off as part of routine internal adjustments, determined by performance evaluations over the past 12 months.
Bitcoin ETF approval
BlackRock is anticipating SEC approval for its Bitcoin ETF application on January 10th, coinciding with the SEC’s deadline for deciding on the ARK 21 Shares spot Bitcoin ETF. It’s worth noting that the official deadline for BlackRock’s application is set for January 15th.
This announcement follows numerous amendment forms recently filed with the SEC by various spot Bitcoin ETF applicants, including Valkyrie, Grayscale, Bitwise, Hashdex, ARK 21Shares, Invesco Galaxy, Fidelity, Franklin Templeton, VanEck, and WisdomTree.
These filings represent a crucial step in the SEC approval process, enabling U.S. exchanges to list shares of investment securities directly tied to cryptocurrency.
Cash Funds Modification in Bitcoin ETF
A significant development in December 2023 saw BlackRock modifying its Bitcoin ETF application to enhance the participation of Wall Street banks. This was achieved by introducing new shares within the fund that can be acquired with cash, expanding beyond cryptocurrency-only purchases.
The in-kind redemption model enables major banks to serve as authorized participants for the fund, overcoming previous restrictions that hindered them from holding Bitcoin or crypto directly on their balance sheets
To conclude, BlackRock’s reducing of its workforce aligns with its expectations for potential SEC approval of its Bitcoin ETF application. This move is part of broader efforts to make cryptocurrency investments more accessible to traditional financial institutions, paving the way for increased institutional participation in the crypto market.
Note: It’s a research based article not a financial advice.
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