Grayscale Bitcoin Investments, the muscle behind GBTC, sees CEO Michael Sonnenshein out and ex-Goldman Sachs exec Peter Mintzberg stepping in on August 15.
The firm is staring down a shifting investor scene and tough Bitcoin fund rivals like BlackRock’s iShares Bitcoin Trust.
Barry Silbert, founder and CEO of Digital Currency Group (DCG), shared the news of Michael Sonnenshein’s departure in a May 20th X post.
“As we position Grayscale for its next phase of growth, excited to welcome Peter Mintzberg as Grayscale’s CEO, effective August 15. Joining from Goldman Sachs, Peter has 20+ years of experience across prominent asset managers, including BlackRock, OppenheimerFunds & Invesco,” Silbert wrote.
Grayscale CEO Change Comes During Competition and Market Shifts
November 2021 saw GBTC at the top of its game with $40 billion under management, letting investors ride the Bitcoin wave indirectly.
Fast forward to its January ETF conversion, which has hemorrhaged $17 billion. Grayscale lost interest in the TradFi world.
“There were definitely times when we would have been allocated 45 minutes to a meeting and very quickly into a meeting, we would find we weren’t capturing people’s attention,” Sonnenshein recalled in a March interview.
Wall Street titans BlackRock and Fidelity’s new bitcoin ETFs have pulled in over $30 billion, leaving Grayscale in the dust. One reason is that GBTC’s 1.5% fee looks steep next to cheaper rivals.
While Grayscale was pivotal in achieving regulatory approval for spot bitcoin ETFs they’re now outdated.
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What the New Grayscale CEO Has Planned
Despite substantial outflows, Grayscale continues to generate strong revenue due to high fees and the recent surge in crypto prices.
In the first quarter alone, Grayscale reported $156 million in revenue, constituting more than half of Digital Currency Group’s (DCG) total revenue of $229 million.
Currently, the firm manages about $30 billion in total assets, including $19 billion in GBTC. However, rival BlackRock’s iShares Bitcoin Trust is rapidly catching up, boasting over $18 billion in assets.
While not much is known about Mintzberg’s day-one plan, many experts believe he will introduce new investment vehicles for Grayscale to compete with BlackRock.
“This is an exciting time in Grayscale’s history as it continues to capitalize on the unprecedented momentum in the asset class,” Mintzberg added.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
