Asset management giant BlackRock is expected to receive approval from the U.S. Securities and Exchange Commission (SEC) for its new Bitcoin spot ETF on Wednesday (1/10). It is also reported that the company has raised $2 billion in funds, which will be used to seize the market on the day of issuance. However, according to Fox Business, BlackRock plans to cut 3% of its global workforce, or about 600 employees, to expand its growth business.
Table of Contents:
BlackRock expected to receive approval on 1/10, $2 billion fund already in place
Cryptocurrency supporters anticipate new funds flowing into the market with ETF approval
BlackRock to cut 3% of global workforce for expansion of growth business
According to Fox Business, BlackRock expects its new Bitcoin spot ETF to receive approval from the U.S. Securities and Exchange Commission on Wednesday (1/10). Additionally, it is reported that BlackRock has raised $2 billion in funds from existing Bitcoin holders (first announced by Matthew Sigel of VanEck). Bloomberg ETF analyst Eric Balchunas stated that this is BlackRock’s brand value. He listed the top 25 most successful ETF launches in history, with BlackRock dominating the top 10. This is pre-positioned cash. Furthermore, he received a second source confirming that BlackRock is ready with a large amount of funds for the first day.
On the first day of trading, they inject a large amount of cash into the new ETF, which is recorded as trading volume/liquidity. If this is true, $2 billion will break all records for first-day/week trading volume/asset size of an ETF.
Cryptocurrency supporters are eagerly awaiting the approval of a Bitcoin spot ETF, as they believe these funds will bring billions of dollars in new capital to the cryptocurrency field. In recent months, the price of Bitcoin has been soaring, showing market enthusiasm for this product, not just speculating on the price through futures contracts.
However, cryptocurrency skeptics believe that Bitcoin’s volatility and lack of regulation make it unable to support a healthy market. Non-partisan non-profit organization Better Markets, which advocates for stronger financial regulation, recently stated in a letter to the SEC that approving a Bitcoin spot ETF would be a “historic regulatory mistake.”
However, just as the asset management giant’s performance is shining in the market, according to Fox Business, BlackRock plans to cut 3% of its global workforce, or about 600 employees, which insiders describe as routine. Last year, BlackRock also carried out a similar round of layoffs based on employee performance indicators.
As of the third quarter of 2023, BlackRock’s assets under management stood at $9 trillion, a significant decrease from the peak of over $10 trillion. Sources said that the funds saved from the layoffs will be used to expand growth businesses, such as technology investments and investments in so-called alternative products, rather than stocks and bonds.
BlackRock
Bitcoin spot ETF
Fox Business