In a strategic move, the world’s largest asset manager, BlackRock, is reportedly planning to reduce its global workforce by approximately 3%, equating to around 600 employees, in the coming days. Sources suggest that this downsizing is part of routine internal adjustments and will be based on employee performance over the past 12 months.
This development coincides with heightened anticipation at BlackRock surrounding the United States Securities and Exchange Commission’s (SEC) decision on its spot Bitcoin exchange-traded fund (ETF) application. According to a report from Fox Business on January 6, BlackRock is expecting favorable news from the SEC on January 10, the same day the regulatory body has a deadline to approve or reject the ARK 21 Shares spot Bitcoin ETF. However, it is worth noting that the SEC’s official deadline for BlackRock’s Bitcoin ETF application is set for January 15.
The recent flurry of activity in the spot Bitcoin ETF space has seen multiple asset managers, including BlackRock, filing 19b-4 amendments with the SEC. BlackRock submitted its amendment on January 5, aligning with the submissions of other key players in the industry, such as Valkyrie, Grayscale, Bitwise, Hashdex, ARK 21Shares, Invesco Galaxy, Fidelity, Franklin Templeton, VanEck, and WisdomTree.
These amendment filings represent a crucial step in the SEC approval process. Additionally, companies must complete S-1 documents to enable U.S. exchanges to list shares of investment securities directly exposed to cryptocurrencies.
Notably, BlackRock has been actively refining its Bitcoin ETF application, making it more accessible for Wall Street banks to participate. The changes introduced in December 2023 allow major banks to engage as authorized participants, facilitating in-kind redemptions. This innovation enables them to create new shares in the fund with cash, bypassing restrictions that prohibit the direct holding of Bitcoin or cryptocurrencies on their balance sheets. As BlackRock navigates regulatory waters, these workforce adjustments and strategic moves underscore the dynamic nature of the evolving cryptocurrency and ETF landscape.
