Unexpected Move from Blackrock: What is the Latest Situation in Spot Bitcoin ETF Applications?

BlackRock, the world's largest asset manager, has announced plans to reduce its global workforce by about 3% in the coming days. This development comes amid expectations of positive news from United States Securities and Exchange Commission (SEC) officials regarding BlackRock's spot Bitcoin exchange-traded fund (ETF) application. So, what are the remarkable developments in the process? We examine it together.

Unexpected step from Blackrock
According to a Jan. 6 report by Fox Business, citing people familiar with the matter, about 600 employees will be laid off as part of routine internal adjustments. This step will be determined by the performance of the employees in the last 12 months. With all these developments, it was announced that BlackRock expects its spot Bitcoin ETF application to be approved on January 10, and it is noteworthy that it is the same day as the SEC's deadline for approving or rejecting the ARK 21 Shares spot Bitcoin ETF application. However, the SEC's deadline for BlackRock's Bitcoin ETF application is not until Jan. 15.

This comes after a hasty amendment form was filed with the SEC by spot Bitcoin ETF applicants seen in recent days. On Jan. 5, BlackRock filed a 19b-4 update for its spot Bitcoin ETF application.

Filing; It took place on the same day as other asset managers, including Valkyrie, Grayscale, Bitwise, Hashdex, ARK 21Shares, Invesco Galaxy, Fidelity, Franklin Templeton, VanEck, and WisdomTree.
Striking Detail About ETF Application
These filings are one of the final steps in the SEC approval process, but S-1 documents must be completed for U.S. exchanges to list shares of investment securities that invest directly in crypto assets. Meanwhile, in December, BlackRock made changes to its Bitcoin ETF app to make it more accessible for Wall Street banks to participate by creating new shares in the fund with cash instead of just crypto.

The in-kind redemption model will enable large banks to serve as authorized participants for the fund. In this way, they will be able to bypass the restrictions that prevent them from holding Bitcoin or crypto directly on their balance sheets. With the process discussed, institutions will be able to directly own spot Bitcoin for ETF products.

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