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Grayscale’s ETF Chief David LaValle Exits Ahead of Company’s Confidential IPO Plans
Grayscale’s global head of ETFs, David LaValle, is set to depart the company at the end of July, marking an end to a four-year tenure marked by significant milestones in the firm’s crypto ETF push.
LaValle joined Grayscale in August 2021 when its flagship Bitcoin fund held approximately $25 billion in assets. This made it the world’s largest crypto asset manager at the time. In August 2023, Grayscale achieved a landmark victory over the SEC, paving the way for spot Bitcoin ETFs to be approved in the US and opening the door for other asset managers to increase their efforts to bring other crypto funds to Wall Street.
However, this legal victory also set the stage for increased competition. It allowed fund management giants like BlackRock and Fidelity to enter the crypto ETF space with confidence, attracting institutional capital and retail investors due to their lower fees. In comparison, Grayscale’s Bitcoin and Ethereum products charge fees of 1.5% and 2.5%, respectively. On the other hand, BlackRock’s Bitcoin ETF charges a mere 0.25%.
As a result, Grayscale has 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 amidst preparations for an initial public offering (IPO) in the US, with the company having confidentially submitted a draft registration statement to the SEC last week. In addition to going public, Grayscale is also seeking approval to launch numerous spot crypto ETFs, including those tied to Ethereum, Bitcoin, XRP, Solana, Cardano, and other prominent digital assets.
Notably, just recently, the SEC approved Grayscale’s application to convert its Grayscale Digital Large Cap Fund (GDLC) into an ETF through staff’s delegated authority. However, only a day after this approval, the SEC’s commissioners decided to put the approval on hold for further review, effectively halting the fund’s launch temporarily.
The timing of LaValle’s exit and the company’s IPO plans is seen as a significant development by Unchained.
Source: cryptobriefing.com
