BlackRock, the largest asset manager globally, is reportedly set to reduce its worldwide workforce by approximately 3% this week.
As indicated by sources familiar with the matter, BlackRock plans to terminate approximately 600 employees as part of its regular internal adjustments. The selection of individuals affected will be based on their performance evaluations from the past year.
Furthermore, reports suggest that BlackRock is anticipating a favorable outcome from the U.S. Securities and Exchange Commission (SEC) regarding its application for spot Bitcoin Exchange Traded Funds (ETFs). According to the Fox Business Channel on January 6, the company expects approval for its Bitcoin ETF application on January 10, coinciding with the SEC’s deadline for ruling on the ARK 21 Equity Spot Bitcoin ETF. However, the SEC's deadline for decisions on BlackRock's Bitcoin ETF applications is slated for January 15. This development follows several amendments filed this week by spot Bitcoin ETF applicants with the SEC.
On January 5, BlackRock submitted a 19b-4 amendment to its spot BTC ETF application, joining other asset managers such as Valkyrie, Grayscale, Bitwise, Hashdex, ARK 21Shares, Invesco Galaxy, Fidelity, Franklin Templeton, VanEck, and WisdomTree on the same day.
These filings represent the final stages in the SEC approval process. Nonetheless, U.S. exchanges must complete S-1 filings to list stocks as investment securities directly linked to cryptocurrencies.
In December 2023, BlackRock altered its Bitcoin ETF application to facilitate Wall Street banks' participation. This modification involved creating new shares in the fund using cash, not solely cryptocurrencies, thereby allowing for an in-kind redemption model. This change is intended to enable major banks to become authorized participants in the fund, circumventing restrictions that prevent direct holdings of Bitcoin or cryptocurrencies on their balance sheets.
