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Michael Sonnenschein has stepped down as CEO of Grayscale Investments after more than a decade helping establish the US group as one of the world’s largest crypto asset managers.
He will be replaced in August by Peter Mintzberg, Goldman Sachs’ global head of wealth and asset management strategy.
Sonnenschein joined Grayscale in 2014 to help build a Bitcoin investment trust and served as CEO since 2021. He will leave to “pursue other interests,” the group said in a statement.
His departure comes as Grayscale faces fierce competition to dominate the emerging market of stock exchange traded funds that invest directly in Bitcoin.
Grayscale won a pivotal court victory last year, paving the way for the Securities and Exchange Commission to approve spot exchange-traded funds in January after years of rejection.
The approval also allows Grayscale to convert its Bitcoin trust into an ETF, but the head start it had when it managed $28 billion in assets is slowly eroding. Rivals like Fidelity, Ark and BlackRock undercut their rivals in fees, and Grayscale’s 1.5% fee is among the highest on the market.
Grayscale ETF holders have withdrawn more than $17 billion since January, reducing assets under management to about $19.4 billion, according to Morningstar. Since then, BlackRock’s Bitcoin ETF has grown to $18.4 billion.
“The company’s success in court has created a rapidly growing segment of the ETF market,” said Todd Rosenbluth, head of research at consulting firm Vettafi. “However, Grayscale’s asset lead has been eroded by intense competition from large asset managers such as BlackRock and Fidelity.”
New York Group announced that Chief Financial Officer Edward McGee will lead the company until Mr. Mintzberg takes over on August 15.
Barry Silbert, CEO of Digital Currency Group, which owns Grayscale, said: “Peter is an exceptional strategic leader with global expertise across the most prominent asset management companies, “This is a key element in positioning our scale for the next stage of growth.” He was not available for an interview Monday.
“This is an exciting time in Grayscale’s history as Grayscale continues to capitalize on unprecedented momentum in the asset class,” Mintzberg said in a statement.
In a post on LinkedIn, Sonnenschein said he is departing with “deep gratitude to everyone who has been a part of this incredible rocket ship journey” and is “excited for what lies ahead.” Stated.
Grayscale also runs the $9 billion Ethereum Trust and is one of several asset managers looking to launch an Ethereum ETF. The SEC has a deadline this week to decide whether to approve two of these Ethereum ETF applications.
