BlackRock expects Bitcoin spot ETF to be approved on 1/10, with $2 billion ready to go.

The asset management giant BlackRock is expected to receive approval from the U.S. Securities and Exchange Commission for its new Bitcoin spot ETF on Wednesday, 1/10. Reports also indicate that it has raised $2 billion in funds to capture the market on the day of issuance. However, according to a report by Fox Business, BlackRock plans to lay off 3% of its workforce globally, about 600 employees.

BlackRock Expected to Get Approval on 1/10, $2 Billion Fund Ready to Go

According to a report from Fox Business, BlackRock anticipates that its new Bitcoin spot ETF will receive approval from the U.S. Securities and Exchange Commission (SEC) on Wednesday, 1/10.

Additionally, it has been rumored in the market that BlackRock has raised $2 billion from existing Bitcoin holders, as initially reported by VanEck's Matthew Sigel. Bloomberg ETF analyst Eric Balchunas stated that this is a testament to BlackRock's brand value. He listed the 25 most successful ETF launches in history, with BlackRock dominating the top 10. This is a cash queue, meaning they have lined up the funds beforehand rather than having organic new money. Furthermore, he received a second source confirming that BlackRock is ready with substantial funds for the first day.

They will inject a significant amount of cash into the new ETF on the first day of trading, which will be recorded as trading volume/liquidity. If this holds true, the $2 billion will break all records for first-day/week trading volume/asset under management for an ETF.

This caught my attn too, hadnt heard this but it would be on brand for BlackRock. They’ve lined up and injected big cash into new ETFs on first day of trading so it registers as volume/flows. *If* it’s true, $2b would blow away all first day/week volume/aum records for an ETF. https://t.co/vL3psVukcm

— Eric Balchunas (@EricBalchunas) January 5, 2024

Crypto Supporters Await ETF for Influx of New Capital to Market

Crypto enthusiasts are eagerly anticipating the approval of a Bitcoin spot ETF, believing that these funds could bring in billions of dollars in new capital to the crypto space. In recent months, the price of Bitcoin has been skyrocketing, showing market enthusiasm for this product beyond just 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 nonprofit organization Better Markets, which advocates for stronger financial regulation, recently sent a letter to the SEC stating that approving a Bitcoin spot ETF would be a "historic regulatory mistake."

BlackRock Plans Global Layoffs of 3% to Fund Growth Initiatives

Amid the asset giant's impressive performance in the market, BlackRock is reportedly planning to cut 3% of its global workforce, about 600 employees, as reported by Fox Business. Insiders have described this as a routine measure. Last year, BlackRock also conducted a similar round of layoffs based on employee performance metrics.

BlackRock's assets under management stood at $9 trillion as of the third quarter of 2023, a significant drop from its peak of over $10 trillion. Sources mentioned 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.