Grayscale CEO Michael Sonnenshein steps down after growing assets to $30 billion; Goldman exec Peter Mintzberg succeeds.
TakeAway Points:
- Goldman Sachs’ Peter Mintzberg will take over as CEO of Grayscale following Michael Sonnenshein’s ten-year tenure, beginning on August 15.
- With the conversion of its Bitcoin Trust to an ETF in January, Grayscale witnessed withdrawals totaling $17 billion under Sonnenshein.
- BlackRock and Fidelity’s new bitcoin ETFs were made possible by Grayscale’s legal victory against the SEC last year.
Change in Leadership at Grayscale
The biggest cryptocurrency asset management firm, Grayscale Investments, has announced a major leadership transition with the departure of CEO Michael Sonnenshein, who has led the company for ten years. Under Sonnenshein’s leadership, the company’s managed assets increased from $60 million to about $30 billion. He was essential to Grayscale’s success, as seen by the historic court decision he won against the SEC, which allowed the company to list the first Bitcoin ETF on NYSE Arca. With a statement that said, “Michael directed the firm through exponential expansion & handled its crucial role in bringing spot bitcoin ETFs to market, leading the path for the larger financial industry,” Grayscale’s parent company, Digital Currency Group CEO Barry Silbert, acknowledged Sonnenshein’s efforts.
Peter Mintzberg Assumes Leadership
With effect from August 15, Sonnenshein will be succeeded as CEO by Peter Mintzberg, who is presently the Global Head of Strategy for Asset and Wealth Management at Goldman Sachs. Having held key roles at BlackRock, OppenheimerFunds, and Invesco, Mintzberg provides more than 20 years of expertise in asset and wealth management. Investor relations, mergers & acquisitions, and strategy creation are among his areas of expertise. “Peter is an extraordinary strategic leader with global competence across the most prominent asset managers,” said Barry Silbert, expressing his trust in Mintzberg’s leadership.
“I am eager to see what he manages to do at Grayscale in the upcoming chapter.”
Prospects for the Future and Strategic Vision
According to the report, Mintzberg’s appointment occurs at a pivotal moment for Grayscale and the cryptocurrency space as a whole. The company has introduced nineteen cryptocurrency investment solutions that offer exposure to the asset class in a diverse and theme-based manner. “I have long respected Grayscale’s position as the top crypto asset management organisation,” Mintzberg said, expressing his excitement about joining Grayscale. Grayscale is experiencing an exciting point in its history as it keeps leveraging the asset class’s unheard-of momentum.” Until Mintzberg formally takes over, Edward McGee, Grayscale’s chief financial officer, will act as the company’s acting chief executive officer.
About
Grayscale was founded in 2013, launching a bitcoin trust that year. The business joined the Digital Currency Group as a subsidiary in 2015. In 2015, the company became a subsidiary of Digital Currency Group. The same year, Grayscale Bitcoin Trust (OTCQX: GBTC) began trading over-the-counter on the OTCQX market, becoming the first publicly traded bitcoin fund in the United States. The company charged higher than average fees compared to similar exchange-traded funds (ETFs), but said the fees were to cover the costs of trading bitcoin. Grayscale sought to turn GBTC into an ETF in 2017, but voluntarily withdrew the application following negative remarks from the SEC.
