BlackRock Plans Workforce Reduction as it Awaits Bitcoin ETF Approval
BlackRock, the world’s largest asset manager, is preparing to cut its global workforce in the coming days. This announcement comes as the firm anticipates receiving positive news from the US Securities and Exchange Commission (SEC) regarding its Bitcoin spot exchange-traded fund (ETF).
Like many other asset management firms, BlackRock is seeking to offer a spot BTC ETF, which is an investment product that tracks the price of Bitcoin in the United States.
BlackRock Expects Bitcoin ETF Approval Soon
According to a report by FOX Business, BlackRock is planning to lay off around 600 employees, accounting for approximately 3% of its current workforce. This move is part of routine internal changes and is similar to previous layoffs based on performance metrics.
The timing of this staff reduction coincides with BlackRock’s expectation of receiving approval for its Bitcoin spot ETF bid by January 10. While the SEC’s official deadline for the Bitcoin ETF decision is January 15, it is widely anticipated that all pending applications will be approved on January 10, including BlackRock’s.
A wave of optimism has swept through the industry after several asset managers, including BlackRock, submitted 19b-4 amendment forms to the SEC. These forms are a crucial step in the approval process for an exchange-traded fund.
Bloomberg Analysts Predict High Chance of Bitcoin ETF Approval
Bloomberg analysts Eric Balchunas and James Seyffart have revised their prediction for the approval of a Bitcoin spot ETF in the US. They now believe there is only a 5% chance of denial, down from their previous estimate of 10%.
The analysts argue that the SEC would need to invent new reasons or disregard court rulings to deny the Bitcoin ETF. They also acknowledge that it is highly unlikely for the US presidency to interfere with the approval process.
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