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BlackRock Announces Layoffs as It Approaches Bitcoin Spot ETF

BlackRock, the world’s largest asset manager, is preparing to announce a significant reduction in its workforce this week, affecting approximately 3% of its global staff. According to a report by Fox Business, this reduction, which involves about 600 employees, is part of routine internal adjustments and will be determined by employees’ performance over the past twelve months.

BlackRock lays off 600 employees as it approaches its Bitcoin Spot ETF

As BlackRock awaits a favorable response from the US Securities and Exchange Commission for its Bitcoin Spot ETF, the company is also making adjustments to its workforce. January 10, the deadline for approval or rejection of the ARK 21Shares ETF, marks a critical moment not only for BlackRock but also for the entire cryptocurrency industry.

The layoff of around 600 employees, which has not yet been announced, is described internally as a routine operation, according to a familiar source.

Fox Business

Strategic changes and timing

In the days leading up to this deadline, BlackRock and other asset managers have submitted amendment forms for their Bitcoin Spot ETF applications to the SEC. These submissions are one of the final steps in the SEC approval process. BlackRock, in particular, proposed an amendment on January 5 to make its ETF more accessible to Wall Street banks by creating new shares in the fund with cash instead of solely with crypto.

This redemption model will allow major banks to serve as authorized participants for the fund, enabling them to bypass restrictions preventing direct holdings of Bitcoin or cryptocurrencies on their balance sheets. This strategic adaptation showcases BlackRock’s effort to align its Bitcoin Spot ETF with the regulatory and operational realities of the traditional banking sector.

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