BlackRock, the world’s largest asset manager, has announced plans to reduce its global workforce by about 3% as part of routine internal adjustments. This move comes amid expectations of a positive response from the U.S. Securities and Exchange Commission (SEC) regarding BlackRock’s application for a spot Bitcoin exchange-traded fund (ETF). Approximately 600 employees are expected to be laid off based on their performance over the past 12 months.
The anticipated approval of BlackRock’s spot Bitcoin ETF application is set for January 10th, coinciding with the SEC’s deadline to make a decision on the ARK 21 Shares spot Bitcoin ETF application. However, the SEC’s final decision date for BlackRock’s Bitcoin ETF application is not until January 15th.
These developments follow the submission of expedited amendment forms to the SEC by spot Bitcoin ETF applicants. BlackRock updated its spot Bitcoin ETF application with a 19b-4 filing on January 5th, alongside other asset managers, including Valkyrie, Grayscale, and Bitwise.
The applications represent one of the final steps in the SEC approval process, but completion of S-1 documents is required for U.S. exchanges to list shares of investment securities that invest directly in crypto assets. In December, BlackRock modified its Bitcoin ETF application to allow Wall Street banks to participate by creating new shares with cash instead of crypto, making it more accessible.
This in-kind redemption model will enable major banks to serve as authorized participants for the fund, circumventing restrictions that prevent them from holding Bitcoin or crypto directly on their balance sheets. Institutions will thus be able to own spot Bitcoin directly through ETF products.