Breaking: Bitcoin ETF Applicant BlackRock to Lay Off 3% of Workforce

American investment banking giant, BlackRock Inc is reportedly set to lay off a total of 3% of its workforce in a major shakedown reminiscent of the 2023 mid-year layoffs. 

BlackRock Layoffs Amid Potential Spot Bitcoin ETF Approval

According to Fox Business Network’s Senior Correspondent Charles Gasparino, the banking giant is bound to announce the layoffs in about 3 days, and a total of 600 staff risk losing their jobs this time.

This news is coming at a very odd time as BlackRock is leading the horde of over 12 applicants looking to secure approval for spot Bitcoin ETF any time from Monday. Infact, Charles Gasparino reported that BlackRock is expecting approval for its iShares Bitcoin Trust product from the United States Securities and Exchange Commission (SEC) as early as next Wednesday.

It is worth noting that the potential layoff rounds are not connected to capital deficiency, but rather, over the performance of the affected staff according to the report. BlackRock has maintained its ranking as the largest investment management company in the world with over $8.59 trillion as of 2022.

Despite the sheer coincidence in the timing of the layoffs, BlackRock has shown grit with respect to its commitment to the Bitcoin ETF pursuit. The company was the first to seed its spot Bitcoin ETF application last year and according to Matthew Sigel, the Head of Digital Assets Research at VanEck, the company has about $2 billion in capital to jumpstart its ETF trading.

While BlackRock has not made the layoffs official, it has its earnings report released by January 12, a time that might be marked with multiple histories in the firm’s existence.

BlackRock’s Leadership in Crypto

BlackRock has been a vocal advocate of crypto innovations with Chief Executive Officer (CEO) Larry Fink notably identifying as a major proponent of Bitcoin. Larry Fink has always given bullish comments about the digital asset, declaring in an interview last year that investors now consider Bitcoin as a “Flight to Quality.”

The entrance of the firm into the spot Bitcoin ETF race gave the first true glimpse of possibility to other applicants, particularly those whose applications have been rejected by the SEC before now. Per its history, BlackRock has more than a 95% win rate on ETFs it has applied for in the past.

The influence of the firm has enhanced the confidence that the more than 10-year wait for this product is finally set to be over.