BlackRock, the world’s largest asset manager, is reportedly preparing to cut its global workforce in the coming days. This decision comes as the firm anticipates positive news from the US Securities and Exchange Commission (SEC) regarding its Bitcoin spot exchange-traded fund (ETF). BlackRock is one of many asset management firms aiming to offer a spot BTC ETF, an investment product that follows the price of Bitcoin, the world’s largest digital asset.
According to a report by FOX Business on Saturday, January 6, BlackRock plans to lay off approximately 600 employees, which equates to about 3% of its current workforce. This is part of routine internal changes, and a similar round of layoffs was carried out in 2023 based on performance metrics. The timing of these layoffs is noteworthy, as BlackRock expects its Bitcoin spot ETF bid to be approved by Wednesday, January 10. Despite the SEC’s deadline for the Bitcoin ETF not being until January 15, it is expected that the agency will approve all pending applications on January 10, the deadline for the ARK 21Shares BTC ETF.
This optimism follows the submission of 19b-4 amendment forms to the SEC by about a dozen Bitcoin spot ETF applicants, including BlackRock, on Friday, January 5. Other asset managers who submitted these forms include Grayscale, Valkyrie, ARK 21shares, Hashdex, Bitwise, Invesco Galaxy, Fidelity, VanEck, WisdomTree, and Franklin Templeton. While these submissions are a crucial step in the SEC approval process for an ETF, S-1 filings still need to be completed and endorsed for exchanges in the United States to start listing crypto ETF products. However, many experts believe the final S-1 filings will be accepted next week.
Bloomberg analysts Eric Balchunas and James Seyffart have revised their earlier prediction for the approval of a Bitcoin spot ETF in the United States. In a recent post, Balchunas stated that the likelihood of the Bitcoin spot ETF being denied has decreased from 10% to 5%. The Bloomberg researchers suggest that the only ways the SEC can reject the new crypto product are by creating new reasons or completely disregarding court rulings. They also noted that, although highly unlikely, the US presidency could halt the Bitcoin ETF approval. Meanwhile, the price of Bitcoin has broken above $44,000 on the daily timeframe.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Eric Balchunas, James Seyffart |
| Companies | Invesco Galaxy, WisdomTree, Valkyrie, BlackRock, US Securities and Exchange Commission, Bitwise, FOX Business, ARK 21Shares, Hashdex, Grayscale, VanEck, Franklin Templeton, Bloomberg, Fidelity |
| Currencies | united states dollar, Bitcoin |
| Securities | None |
