Michael Sonnenshein, CEO of asset management firm Grayscale, the key player behind the approval of the Bitcoin spot Exchange-Traded Fund (ETF), announced his resignation, Bloomberg reported on the 20th (local time).
Sonnenshein joined Grayscale in 2014 and has served as CEO for three years since 2021.
Under Sonnenshein's leadership, Grayscale played a crucial role in securing the first approval of a Bitcoin spot ETF in January. Bloomberg explained that when the U.S. Securities and Exchange Commission (SEC) blocked Grayscale's attempt to convert its existing fund into a Bitcoin spot ETF in 2022, the company filed a lawsuit and won in August last year, which laid the groundwork for the approval of the Bitcoin spot ETF.
However, the conversion to a Bitcoin spot ETF was a double-edged sword for Grayscale. Due to charging a higher fee rate of 1.5% compared to other asset managers like BlackRock, the company reportedly suffered an outflow of funds resulting in a loss of $17.6 billion. This was also cited as a factor that hindered further price increases of Bitcoin.
In his resignation statement, Sonnenshein said, "It has been an honor to work with smart and passionate people to grow Grayscale into an industry giant over the past decade," adding, "Cryptocurrency is at an important inflection point, and now is the time for a stable transition."
Grayscale's next CEO is Mintzberg, Global Head of Asset and Wealth Management Strategy at Goldman Sachs. He is a financial expert with over 20 years of experience, having worked at BlackRock, OppenheimerFunds, Invesco, and others. He is scheduled to begin his CEO term on August 15.
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