Grayscale Prepares for Spot Bitcoin ETF with New Chairman
Grayscale Investments, the world’s largest crypto asset manager, is undergoing a major leadership change as it awaits the approval of its spot bitcoin ETF application. The firm’s chairman, Barry Silbert, has stepped down and will be replaced by Mark Shifke, the current CFO of Digital Currency Group (DCG), the parent company of Grayscale. The transition will take effect on January 1, 2024.
The crypto asset company manages over $34 billion worth of crypto assets, including its flagship product, the Grayscale Bitcoin Trust (GBTC), which holds more than 620,000 bitcoins, making it the second-largest BTC entity in the world.
Major Efforts Of Grayscale For Bitcoin ETF
The firm has applied to convert GBTC into a spot bitcoin ETF, which would allow investors to buy and sell shares that directly track the price of bitcoin, without the need for intermediaries or custody fees.
The Company has already won a legal battle against the U.S. Securities and Exchange Commission (SEC) in August 2023, when a federal court ruled that the regulator was “arbitrary and capricious” in rejecting its previous spot bitcoin ETF application. The court ordered the SEC to reconsider Grayscale’s application, which is expected to happen in January 2024.
The change in the board signals Grayscale’s readiness and optimism for the spot bitcoin ETF approval, which could bring a massive influx of capital into the crypto market. Sonnenshein, the CEO of Grayscale, said that the spot bitcoin ETF could unlock more than $30 trillion of investment opportunities for crypto. The company is competing with several other spot bitcoin ETF applicants, including BlackRock, Fidelity, and Franklin Templeton.
Why Did Barry Silbert Walk Out?
The resignation of Barry Silbert, the founder, and CEO of DCG, comes amid a civil lawsuit filed by the New York Attorney General, Letitia James, who accused him of failing to disclose the financial status and losses of Genesis Global Capital, a crypto lending platform affiliated with DCG.
Silbert allegedly defrauded over 230,000 investors of more than $1 billion. Silbert’s departure raises some questions about his motives and timing, as he leaves just before the potential approval of the spot Bitcoin ETF.
The new chairman of Grayscale, Mark Shifke, has been the CFO of DCG since 2016. He will be joined by three other board members: Matthew Kummel, the senior vice president of operations at DCG; Edward McGee, the CFO of Grayscale; and Michael Sonnenshein, the CEO of Grayscale. Mark Murphy, the president of DCG, has also resigned from the board. The changes were announced in an SEC filing on December 26, 2023.
Disclaimer
This article is only for information purposes and does not give any guidance or suggestions on finance, investment, or other matters. You may lose money if you invest or trade in crypto or stock. The author or anyone mentioned in this article is not responsible for your decisions.
