Grayscale CEO Michael Sonnenshein departs role, former Goldman Sachs exec to step in

Michael Sonnenshein, CEO of the crypto asset manager Grayscale Investments, has stepped down from his position to "pursue other interests," according to a company release.

Though the exact reasons for Sonnenshein's departure remain unclear, Grayscale's spot bitcoin fund GBTC is seeing a large number of investors leaving, reports the Walls Street Journal.

Peter Mintzberg will serve as the firm's CEO starting on Aug. 15, 2024, and join Grayscale's board of directors.

Prior to joining Grayscale, Mintzberg held the Global Head of Strategy for Asset and Wealth Management position at investment banking firm Goldman Sachs, as well as other strategy-oriented roles at other major financial firms.

"As we position Grayscale for its next phase of growth, excited to welcome Peter Mintzberg as Grayscale’s CEO, effective August 15," said Barry Silbert, founder and CEO of Grayscale's parent firm DCG. "Joining from Goldman Sachs, Peter has over 20 years of experience across prominent asset managers, including BlackRock, OppenheimerFunds and Invesco."

"I want to thank Sonnenshein during his 10 years at Grayscale," Silbert added. "Michael guided the firm through exponential growth and oversaw its pivotal role in bringing spot bitcoin ETFs to market, leading the way for the broader financial industry. We wish him the best in his future endeavors."

Grayscale ETF

Eric Balchunas, a senior exchange-traded fund analyst at Bloomberg, called the CEO switch a "big shakeup at Grayscale," adding that "they were just beginning to see inflows again."

Since spot bitcoin ETFs were approved in mid-January of this year, Grayscale's converted fund GBTC saw significant outflows — to the point where the fund's outflows negated inflows from spot bitcoin ETFs more broadly. GBTC began to see inflows starting in early May, ending what had been a 78-day streak of outflows, The Block previously reported.

GBTC saw inflows of $27 million on May 15 and $4.6 million on May 16, The Block's Data Dashboard shows.

The Block reached out to Grayscale for comment.