According to a report by Financial News London, BlackRock is planning to lay off around 3% of its workforce, which amounts to approximately 600 employees. This comes as the investment firm awaits a decision on its application for a spot Bitcoin exchange-traded fund (ETF). The layoffs are said to primarily affect the company’s US operations and are expected to be announced in the coming days.
BlackRock, which manages over $9 trillion in assets, has been actively exploring opportunities in the cryptocurrency space. The company recently posted job listings for roles related to blockchain and digital assets, signaling its interest in expanding its presence in the industry. However, the layoffs suggest that BlackRock may be reallocating resources to focus more on digital assets and cryptocurrencies, especially if its Bitcoin ETF application is approved.
The company’s ETF application has been eagerly anticipated by the crypto community, as a Bitcoin ETF could potentially bring more institutional investors into the market and further legitimize cryptocurrencies as an asset class. BlackRock’s involvement in the crypto space could also have a significant impact on the industry, given its size and influence in the traditional financial world.
While the layoffs are unfortunate for the affected employees, it’s another example of how the rapid growth of the crypto industry is reshaping the traditional financial sector. As more companies and institutions embrace cryptocurrencies, they are also adapting their operations and workforce to align with the changing landscape. The news of BlackRock’s layoffs serves as a reminder that the crypto revolution is not just centered around digital currencies but is also influencing the broader economy in unexpected ways.
