Barry Silbert has made a notable return to Grayscale Investments, the asset management company and crypto exchange-traded fund (ETF) issuer, as chairman, just weeks after the crypto asset manager filed confidentially for an initial public offering (IPO) in the US.
Silbert, who founded Grayscale in 2013, takes over from Mark Shifke, who will remain on the board as the company prepares for its future as a publicly traded entity. This leadership transition also coincides with Grayscale’s plans to bring in independent directors to strengthen its governance.
New Executive Team At Grayscale
In a significant move to bolster its executive team, Grayscale has appointed four professionals with extensive backgrounds in traditional finance (TradFi).
According to the firm’s announcement made on Monday, the new hires include Diana Zhang as Chief Operating Officer, Ramona Boston as Chief Marketing Officer, Andrea Williams as Chief Communications Officer, and Maxwell Rosenthal as Chief Human Resources Officer.
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These executives join Grayscale from firms such as Bridgewater, Apollo, Goldman Sachs, and Citadel, reporting directly to CEO Peter Mintzberg, who has been at the helm since last year. Mintzberg stated:
This blend of institutional rigor and entrepreneurial drive shapes every aspect of how we operate at Grayscale, enabling us to deliver clients innovative investment strategies with the operating integrity they expect from a trusted partner.
Silbert’s return comes at a critical juncture for the company, following a turbulent period marked by regulatory scrutiny. He stepped down as chairman in late 2023, just before the US Securities and Exchange Commission’s (SEC) ruling on spot Bitcoin ETFs, including Grayscale’s long-standing effort to convert its Bitcoin Trust (GBTC) into an ETF.
Around the same time, Silbert’s parent company, Digital Currency Group (DCG), faced legal challenges from New York’s attorney general regarding the collapse of crypto lending company Genesis, and its connections to crypto exchange Gemini’s Earn program, with Silbert himself named in the lawsuit.
Regulatory Headwinds
In his statement following the announcement, Silbert expressed his enthusiasm about rejoining Grayscale, emphasizing his belief in the company’s direction and the team leading it. Silbert noted:
When I founded Grayscale in 2013, we saw an enormous opportunity to pioneer a new model for accessing and investing in digital assets, and to build the operational infrastructure that investors would ultimately demand. Today, I continue to have deep conviction in the company’s long-term positioning and in the leadership team guiding it forward.
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Grayscale currently manages over $35 billion across a variety of crypto investment products, including spot Bitcoin and Ethereum ETFs, as well as diversified digital asset funds.
Earlier this year, DCG reached a $38 million settlement with the US Securities and Exchange Commission over allegations of misleading investors through Genesis Global Capital, a subsidiary of DCG.
The settlement adds to the ongoing regulatory challenges faced by DCG, as New York Attorney General Letitia James has also sued Gemini, Genesis, and DCG over a crypto lending program, alleging they defrauded over 29,000 New Yorkers while concealing $1.1 billion in losses.
Featured image from Fortune, chart from TradingView.com