Michael Sonnhenshein – CEO of the world’s largest Bitcoin ETF, Grayscale – has stepped down from his position, according to a company press release on Monday.
The report said that Sonnhenshein will be replaced by Peter Mintzberg, who currently serves as the global head of strategy of Goldman Sachs’ Wealth Management Division.
Mintzberg will assume his new role on August 15, 2024, and simultaneously join the firm’s Board of Directors. In the interim, Grayscale’s Chief Financial Officer Edward McGee will assume responsibility as the firm’s leader.
“I want to thank Michael for his stewardship of Grayscale, having joined the team in 2014 and serving as CEO since 2021,” said Barry Silbert, founder and CEO of Grayscale’s parent company, Digital Currency Group (DCG). “We wish him the best.”
Sonnhenshein thanked Silbert for their partnership over the past 10 years. “I’m excited for what’s next. In the meantime, Grayscale Team, keep building,” he tweeted on Monday.
The departure comes just four months after Grayscale was approved to convert into a Bitcoin spot ETF – an objective which Sonnhenshein led a years-long battle against federal regulators to make happen.
After besting the Securities and Exchange Commission in court last year, multiple asset managers including Grayscale, BlackRock, and Fidelity were greenlighted to simultaneously launch the nation’s first Bitcoin spot ETFs in January.
However, despite having a massive liquidity advantage from its outset. Grayscale has now been nearly surpassed by BlackRock’s fund in terms of assets under management.
Under Sonnhenshein, the company opted to keep its annual management fee at an elevated 1.5%, driving investors out of the ETFin in favor of competitors’ cheaper products.
Up until this month, Grayscale suffered a non-stop streak of daily net outflows, with the Bitcoin held by the fund falling by over 50%.
“They were just beginning to see inflows again too,” said Bloomberg ETF analyst Eric Balchunas on Sonnhenshein’s departure. “Curious about the story behind this.”