- Microsoft has successfully acquired Activision Blizzard in a $69 billion deal.
- The acquisition gives Microsoft access to popular gaming franchises like Call of Duty and Overwatch, further expanding its presence in the gaming industry.
- The Federal Trade Commission (FTC) will continue to assess the deal in ongoing administrative proceedings to address concerns about competition.
The Securities and Exchange Commission (SEC) has set a deadline of midnight for Grayscale Bitcoin Trust’s (GBTC) conversion application dispute. The conversion is a requirement to allow Bitcoin to trade on the stock market.
The events leading up to the deadline involves Grayscale Investments, the world’s largest cryptocurrency asset manager, filing to have its GBTC converted into a Bitcoin exchange-traded fund (ETF) in October 2021. However, the SEC has not yet approved a Bitcoin ETF, casting doubt over the approval of Grayscale’s conversion application. The SEC has previously rejected all Bitcoin ETF proposals while citing issues of market manipulation and a lack of investor protection.
Grayscale’s Defense
Grayscale maintains that converting GBTC into a Bitcoin ETF will allow the fund to receive a more favorable tax treatment. The asset manager sought expedited approval for a Bitcoin ETF from the SEC during the summer, but the commission did not respond before their deadline.
SEC’s Response
The SEC announced that it will make a decision on Grayscale’s conversion application by December 2023, but the asset manager says it has run out of time to convert GBTC into an ETF under current regulations. According to industry observers, the delay in approving a Bitcoin ETF has created an advantage for US rivals in Canada and Germany, who have launched their respective Bitcoin ETFs.
Conclusion
Grayscale’s conversion application remains in dispute, and the SEC’s midnight deadline approaches. The approval of a Bitcoin ETF would make Bitcoin more accessible to investors, so the market is looking out for the SEC’s decision. Even if approved, the full effect of the Bitcoin ETF may not be felt for some time.
