BlackRock to Reduce Global Workforce Ahead of Bitcoin ETF Launch
BlackRock, the world’s largest asset management firm, is planning to cut its global workforce by about 3% before the expected approval of its spot Bitcoin ETF application. The layoffs will affect approximately 600 employees, according to sources familiar with the matter. These job cuts come as BlackRock enters a “more mature phase” of its business and aims to realign its strategic focus. The savings from the layoffs are expected to be directed towards expanding into growth areas such as technology investing and alternative products.
ESG Controversy
Despite being known for pioneering ESG investing, BlackRock has recently de-emphasized its ESG business in the US due to political controversy. Some Republican-led states’ pension funds have pulled billions of dollars from BlackRock in protest against its ESG push. Nevertheless, BlackRock remains a financial powerhouse with $9 trillion in assets under management (AUM).
Impending SEC Decision on Bitcoin ETF
All eyes are now on the US Securities and Exchange Commission (SEC) decision regarding BlackRock’s Bitcoin ETF application, which is expected to be approved by January 10. If approved, it could mark a significant step for BlackRock’s entry into the crypto market. Bloomberg Intelligence’s senior ETF analyst and The ETF Store president predict that approved ETFs could start trading as early as January 11.
Hot Take: BlackRock Positions Itself for Crypto Expansion
As BlackRock prepares for the launch of its Bitcoin ETF and faces a more mature phase in its business, the company is strategically reducing its workforce. By reallocating resources towards technology investing and alternative products, BlackRock aims to position itself for future growth opportunities. While controversy surrounds its ESG business, BlackRock remains a dominant force in the financial industry with trillions of dollars under management. The impending SEC decision on its Bitcoin ETF will play a crucial role in determining BlackRock’s success in the crypto market. If approved, it could open the door for further crypto-related investment products from the asset management giant.
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