Grayscale CEO Michael Sonnenshein resigns, succeeded by Peter Mintzberg, amid the firm's expansion into the ETF market.
Michael Sonnenshein has resigned as CEO of Grayscale Investments, a role he held since 2021. Sonnenshein will be succeeded by Peter Mintzberg, a former Goldman Sachs executive, on August 15th.
Sonnenshein, who joined Grayscale in 2014, is credited with leading the firm through a period of substantial growth, including the pivotal conversion of its Bitcoin Trust into an exchange-traded fund (ETF). The change in leadership comes just months after this landmark event for the company.
Grayscale's parent company, Digital Currency Group, announced on Monday that Mintzberg, currently the global head of strategy for asset and wealth management at Goldman Sachs, will take over the reins in August. In the interim, CFO Edward McGee will lead the company.
Barry Silbert, CEO of Digital Currency Group, praised Sonnenshein for his tenure, stating, "Michael guided the firm through exponential growth & oversaw its pivotal role in bringing spot bitcoin ETFs to market, leading the way for the broader financial industry."
Grayscale faced a long battle with the U.S. Securities and Exchange Commission (SEC), which culminated in a court victory allowing the approval of spot bitcoin ETFs in January. Despite this, Grayscale's Bitcoin Trust (GBTC) experienced approximately $15 billion in outflows over the subsequent three months, as the firm maintained higher fees than its competitors.
The company's once-dominant position, with $28 billion assets under management, has been challenged by rivals like Fidelity, Ark, and BlackRock, who offer lower fees. Grayscale's charge of 1.5 percent remains the highest in the market, contributing to a reduction in assets under management to about $19.4 billion, while BlackRock's bitcoin ETF has grown to $18.4 billion.
In a statement, Mintzberg expressed enthusiasm about his new role, highlighting the "unprecedented momentum in the asset class." Meanwhile, Sonnenshein shared his gratitude in a LinkedIn post, reflecting on the "incredible rocket ship journey."
