BlackRock expects Bitcoin spot ETF to be approved on 1/10, with $2 billion funding ready to go.
BlackRock, the asset management giant, is expected to receive approval from the US 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 and is set to dominate the market on the day of issuance. However, according to Fox Business, BlackRock plans to cut 3% of its global workforce, which amounts to approximately 600 employees.
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BlackRock expected to receive approval on 1/10, $2 billion funds already in place
Crypto supporters anticipate new funds in the market with the ETF
BlackRock globally cuts 3% of workforce, to focus on expanding growth-oriented business
According to Fox Business, BlackRock expects its new Bitcoin spot ETF to receive approval from the US Securities and Exchange Commission on Wednesday (1/10). Additionally, it is reported that BlackRock has raised $2 billion in funds from existing Bitcoin holders, as announced by Matthew Sigel of VanEck. Bloomberg ETF analyst Eric Balchunas stated that this is due to BlackRock’s brand value. He listed the top 25 most successful ETF launches, with BlackRock dominating the top 10. This is lining up cash, rather than organic new money. Furthermore, he received a second confirmation that BlackRock is ready with substantial funds on the first day.
They are injecting a large amount of cash into the new ETF on the first day of trading, which will be recorded as trading volume. If this is true, the $2 billion will break all records for first-day/week trading volume/asset management scale.
Crypto supporters are eagerly anticipating the approval of the Bitcoin spot ETF, believing that these funds will bring billions of dollars in new capital to the crypto market. In recent months, the price of Bitcoin has skyrocketed, indicating enthusiasm for this product in the market, beyond speculation through futures contracts.
However, crypto skeptics argue that Bitcoin’s volatility and lack of regulation make it unsuitable for a healthy market. Non-partisan non-profit organization Better Markets, which lobbies for stronger financial regulation, recently stated in a letter to the SEC that approving a Bitcoin spot ETF would be a “historic regulatory mistake.”
While BlackRock is experiencing a strong performance in the market, according to Fox Business, the company plans to cut 3% of its global workforce, approximately 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 amount to $9 trillion, significantly lower than its peak of over $10 trillion. Sources claim that the funds saved from the layoffs will be used to expand growth-oriented businesses, such as technology investments and investments in so-called alternative products, rather than stocks and bonds.
BlackRock’s Bitcoin spot ETF
BlackRock
Further reading
BlackRock’s 3% workforce reduction: ESG backlash and the motivation behind developing a Bitcoin ETF
SEC sets final deadline for Bitcoin spot ETF application: 12/29
