Image depicting BlackRock's decision to cut 3% of its workforce ahead of Bitcoin ETF deadline.
BlackRock to slash 3% of workforce ahead of Bitcoin ETF deadline: Report

BlackRock Cutting Global Workforce in Anticipation of Bitcoin ETF Approval

The world’s largest asset manager, BlackRock, is reportedly planning to reduce its global workforce by around 3% this week.

This comes as the company is expecting a favorable outcome from the United States Securities and Exchange Commission (SEC) on its spot Bitcoin (BTC) exchange-traded fund (ETF) application.

According to a report from Fox Business on Jan. 6, citing people familiar with the matter, around 600 employees will be laid off as part of routine internal adjustments, and will be determined by employee performance over the past twelve months.

Additionally, BlackRock is anticipating the approval of its Bitcoin ETF on Jan. 10 – the same day that the SEC has a deadline to approve or reject the ARK 21 Shares spot Bitcoin ETF.

The move comes as web 3.0 business opportunities, business models, and ideas are becoming increasingly popular. Companies are exploring ways to make money with web 3.0, including investing in web 3.0 coins and browsers. There is also speculation as to whether Metaverse is part of web 3.0 and how web 3.0 will impact businesses.

Web 3.0 Impact on Bitcoin ETF Applications

The Securities and Exchange Commission (SEC) has set a deadline of Jan. 15 for BlackRock’s Bitcoin ETF application. This follows the flurry of amendment forms filed by spot Bitcoin ETF applicants to the SEC this week.

On Jan. 5, BlackRock submitted a 19b-4 amendment for its spot BTC ETF application, alongside other asset managers like Valkyrie, Grayscale, Bitwise, Hashdex, ARK 21Shares, Invesco Galaxy, Fidelity, Franklin Templeton, VanEck, and WisdomTree.

These developments have raised questions about the impact of Web 3.0 on the cryptocurrency industry and business opportunities arising from the new web-based business models. Metaverse is a potential part of Web 3.0 and its integration into the Bitcoin ETFs could have a significant effect on the industry.

Investment Securities and Bitcoin ETFs

In order for U.S. exchanges to list shares of investment securities with direct exposure to crypto, the completion of S-1 documents is necessary. This is one of the final steps in the SEC approval process.

BlackRock has taken steps to make their Bitcoin ETF application more accessible to Wall Street banks by creating new shares in the fund with cash instead of just crypto. This in-kind redemption model will enable major banks to serve as authorized participants for the fund, allowing them to bypass restrictions preventing the direct holding of Bitcoin or other web 3.0 cryptocurrencies on their balance sheets.

The changes to the Bitcoin ETF application have opened up new web 3.0 business opportunities for Wall Street banks, as well as a range of web 3.0 business ideas and models to make money from web 3.0.

Categorized in:

Tagged in: