US investment banking giant BlackRock Inc is reportedly set to lay off a total of 3% of its workforce in a major shakedown reminiscent of its mid-2023 layoffs.
BlackRock Layoffs Amid Possible Approval of Bitcoin Exchange-Traded Fund
According to Charles Gasparino, chief correspondent for Fox Business, said that the banking giant must announce layoffs within about 3 days, and a total of 600 employees face the risk of losing their jobs this time.
This news comes at a very strange time as BlackRock is leading a crowd of more than a dozen applicants looking to gain approval for a spot Bitcoin ETF anytime starting Monday. In fact, Charles Gasparino reports that BlackRock expects its iShares Bitcoin Trust product to be approved by the US Securities and Exchange Commission (SEC) as early as next Wednesday.
It is worth noting that potential rounds of layoffs are not linked to a lack of capital, but rather to the performance of the affected employees, according to the report. BlackRock maintains its ranking as the world’s largest investment management firm with more than $8.59 trillion as of 2022.
Despite the sheer coincidence in the timing of the layoffs, BlackRock has shown resolve regarding its commitment to the pursuit of the Bitcoin ETF. The company was the first to seed an instant Bitcoin ETF last year and according to Matthew Siegel, head of digital asset research at VanEck, The company has about $2 billion in capital to start trading ETFs.
Although BlackRock did not officially announce layoffs, it released its earnings report by January 12, a time that may mark multiple history in the company’s existence.
BlackRock’s leadership in the cryptocurrency space
BlackRock has been a strong advocate of cryptocurrency innovations, with Chief Executive Officer (CEO) Larry Fink in particular being identified as a major proponent of Bitcoin. It’s always been Larry Fink Given the bullish comments around digital assetsdeclaring in an interview last year that investors now view Bitcoin as a “journey to quality.”
the Company entrance The spot Bitcoin ETF race gave the first real glimpse of the potential for other applicants, especially those whose applications had been rejected by the SEC before now. According to its history, BlackRock has had a win rate of over 95% on the ETFs it has applied for in the past.
The company’s influence has strengthened confidence that the more than 10-year wait for this product is finally over.