BlackRock to Cut Workforce by 3% as Bitcoin ETF Deadline Approaches

BlackRock is one of the major asset management firms that have applied for a spot Bitcoin ETF. However, the platform recently let go of 600 employees in anticipation of the upcoming spot Bitcoin ETF approval.

As per the official reports, BlackRock has slashed human capital by 3% recently. The platform has taken the decision on account of the favorable probability of Bitcoin spot ETF approval by the Securities and Exchange Commission (SEC). A report aired by Fox Business on 6th January indicated that around 600 employees are set to be laid off as part of the routine HR adjustments.

The firm has noted that the decision was based on 12-month performance of individual employees. The firm has also shared enthusiasm regarding the approval of Bitcoin spot ETF on 10th January. This timeline is also going to reveal the SEC’s verdict regarding the Bitcoin spot ETF application of Ark Invest.

However, the final date for BlackRock’s spot ETF application is set for 15th January 2024. The decision was finalized following the form amendments of spot Bitcoin ETF filings in the previous days. BlackRock also submitted a 19b-4 amendment form for the spot Bitcoin ETF application.

All Bitcoin Spot ETF Applicants Amend Filings

Some of the biggest financial firms have entered into the race to list a Bitcoin spot ETF. On this account, various firms such as Valkyrie, Ark21Shares, Fidelity, Invesco Galaxy, Franklin Templeton, WisdomTree, VanEck, and Grayscale have also amended filings with a 19b-4 amendment on the same day as BlackRock.

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The latest amendment is the final edit but organizations will have to go for a S-1 document as part of the exchange listing process as mandatory for all investment shares that track spot prices of digital currencies. BlackRock has added the option of funding spot ETF shares with cash instead of only cryptocurrencies.

This amendment will make the Bitcoin spot ETF application more accessible for Wall Street banking firms. In this manner, fund issuers will be able to appoint major banking firms as authorized participants. Therefore, issuers will be able to circumvent the law that restricts them from holding Bitcoin directly on the balance sheets.

On the other hand, various firms opting for listing a Bitcoin spot ETF application are going for S-1 form amendment for competitive fee rates. Some of the fees are going to be nominated at an accessible rate of 0.24%.

ETF Operating Fees

As per the latest news, various firms in the Bitcoin spot ETF race have opted for an S-1 file amendment. Among the firms, Valkyrie is one of the first entities to make the shift.

In the same time frame, BlackRock, WisdomTree, 21Shares, Invesco, Grayscale, Ark Invest, 21 Shares, Galaxy, and VanEck also made the same decision.  The S-1 amendment is said to have raised the bar of competitiveness among ETF applicants based on features such as economic fee structuring.

Bitwise has set the fee at most accessible with zero fees for the first 6 months or until $1 billion. When either one of the two requirements is completed Bitwise will charge a 0.24% fee. ArkInvest and 21Shares also intend to charge no fee for the first 6 months or until $1 billion which is to be followed by a 0.25% fee.

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