Key Takeaways
- Grayscale’s ETF chief David LaValle is leaving ahead of the company’s confidential IPO plans.
- Grayscale is pursuing new spot crypto ETFs including for Bitcoin, Ethereum, XRP, Solana, and Cardano.
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Grayscale’s global head of ETFs, David LaValle, is stepping down at the end of July, closing out a four-year chapter marked by key milestones in the firm’s crypto ETF push, including the conversion of Grayscale Bitcoin Trust (GBTC) into a spot ETF, Unchained reported Tuesday.
LaValle joined Grayscale in August 2021 when its flagship Bitcoin fund held approximately $25 billion in assets, making it the world’s largest crypto asset manager at the time.
In August 2023, Grayscale won a landmark victory over the SEC, which laid important legal groundwork for the eventual approval of spot Bitcoin ETFs in the US and opened the door for asset managers to ramp up efforts to bring other crypto funds to Wall Street.
But the court victory also set the stage for intensified competition. It allowed fund management giants, including BlackRock and Fidelity, to enter the crypto ETF space with confidence.
With the launch of their own Bitcoin ETFs at far lower management fees, these industry titans quickly attracted institutional capital and retail investors.
Grayscale’s Bitcoin and Ethereum products, which generate the majority of its income, charge fees of 1.5% and 2.5% respectively. In comparison, BlackRock’s Bitcoin ETF charges 0.25%.
Grayscale has since lost its position as the world’s largest crypto asset manager to BlackRock, which now manages nearly $88 billion in its iShares Bitcoin Trust. GBTC’s assets currently stand at approximately $22 billion.
LaValle’s departure comes as Grayscale is gearing toward an initial public offering (IPO) in the US. The company confidentially submitted a draft registration statement to the SEC last week.
Apart from going public, Grayscale is also seeking approval to launch numerous spot crypto ETFs, including those tied to Ethereum, Bitcoin, XRP, Solana, Cardano, and other leading digital assets.
Earlier this month, the SEC approved Grayscale’s application to convert the Grayscale Digital Large Cap Fund (GDLC) into an ETF through staff’s delegated authority. However, just one day after this approval, the SEC’s commissioners decided to stay the approval for an internal review, effectively halting the fund’s launch temporarily.
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