BlackRock, the world’s largest asset manager, plans to cut its global workforce in the coming days, according to the latest report. The move comes as the company expects to receive positive news from the US Securities and Exchange Commission (SEC) regarding its Bitcoin spot exchange-traded fund (ETF).
BlackRock is among a group of asset managers looking to offer the spot BTC ETF, an investment product that tracks the price of the world’s largest digital asset, Bitcoin, in the United States.
BlackRock Expects Bitcoin ETF to Be Approved Wednesday: Report
On Saturday, January 6, FOX Business reported that BlackRock intends to lay off about 600 employees — about 3% of its current workforce — as part of routine internal changes. Citing a source familiar with the issue, the media revealed that the trillion-dollar asset manager carried out a similar round of layoffs in 2023 based on performance metrics.
The timing of these layoffs is particularly interesting, as BlackRock expects its Bitcoin ETF offering to receive approval by next Wednesday, January 10. It will give the green light to all pending applications on January 10 – the deadline for approval or rejection of the ARK 21Shares BTC ETF.
This wave of optimism comes after about a dozen Bitcoin ETF applicants, including BlackRock, filed 19b-4 amendment forms with the Securities and Exchange Commission on Friday, January 5. Other asset managers that have filed modification models include Grayscale, Valkyrie, and ARK 21shares and Grayscale, Valkyrie, and ARK 21shares. Hashdex, Bitwise, Invesco Galaxy, Fidelity, VanEck, WisdomTree, and Franklin Templeton.
While 19b-4 filings are one of the final steps specified in the SEC approval process for an ETF, S-1 filings still need to be completed and approved for U.S. exchanges to begin listing cryptocurrency ETF products. Fortunately, many experts believe the final S-1 filings will be released and accepted next week.
Bloomberg Analyst Reduces Odds of Bitcoin ETF Failure to 5%
Bloomberg analysts Eric Balchunas and James Seyphart revised his previous forecast for approval of a bitcoin ETF in the US. In a new post on X, Balchunas said the probability of a Bitcoin ETF being rejected has dropped from 10% to 5%.
Bloomberg researchers believe that the only ways the SEC can reject a new cryptocurrency product is to invent new reasons or completely ignore court rulings. Also, Balchunas and Seyfart mentioned that although it is very unlikely that the US presidency will stop the approval of a Bitcoin ETF.
Bitcoin price breaks above $44,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Getty Images, chart from TradingView