BlackRock to Cut Global Workforce Amid Expectations of Bitcoin ETF Approval
Summary:
BlackRock, the largest global asset manager, is anticipated to cut approximately 3% of its worldwide staff, amidst hopes for approval from the U.S. SEC for its Bitcoin ETF. About 600 layoffs are expected, linked to internal restructuring based on the past year's performance evaluations. The firm is also hopeful for the sanctioning of its Bitcoin ETF application on January 10, following a flurry of updated Bitcoin ETF applications to the SEC. Furthermore, BlackRock has adapted its Bitcoin ETF application, introducing an in-kind redemption model providing easier involvement for Wall Street banks.
BlackRock, the world's biggest asset manager, is allegedly preparing to cut about 3% of its global workforce this week. This decision arrives as BlackRock anticipates good news from the U.S. Securities and Exchange Commission concerning its Bitcoin (BTC) spot exchange-traded fund (ETF). Fox Business disclosed this information on January 6, citing sources who wished to remain anonymous, stating that about 600 employees are set to be let go as part of standard internal realignments, based on individual performance over the past year.
Simultaneously, BlackRock is said to be hopeful for the green light on its Bitcoin ETF application set for January 10, which is the cut-off date for the SEC to make a decision on ARK 21 Shares' spot Bitcoin ETF.
This follows a flurry of updated forms related to spot Bitcoin ETF applications submitted to the SEC recently. BlackRock was one of several asset management companies, including Valkyrie, Grayscale, Bitwise, Hashdex, ARK 21Shares, Invesco Galaxy, Fidelity, Franklin Templeton, VanEck, and WisdomTree, to file a 19b-4 amendment for their respective BTC ETF applications on January 5.
Completion of S-1 documents is required for U.S. exchanges to list shares of investment securities offering crypto exposure. However, these filings are some of the last steps in the SEC approval process.
In December 2023, it was reported by Cointelegraph that BlackRock revamped its Bitcoin ETF application, intending to make it easier for Wall Street banks to join in by purchasing new shares in the fund with cash as opposed to cryptocurrency.
The introduction of an in-kind redemption model will permit prominent banks to operate as authorized participants for the fund, thereby avoiding limitations on directly holding Bitcoin or other cryptocurrencies on their balance sheets.
Published At
1/7/2024 4:24:08 AM
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