David LaValle, who leads the ETF division globally at Grayscale Investments, is preparing to leave the cryptocurrency asset management company by the end of July, according to a report by Unchained, which cites anonymous sources.
LaValle became part of Grayscale in July 2021 when the company was dealing with investor complaints regarding the growing discount on its main Bitcoin Trust (GBTC). At that point, the trust managed approximately $25 billion, positioning the firm as the biggest manager of crypto assets. The trust’s market price was significantly lower than the bitcoin it held, causing discontent among its shareholders.
Although much of the spotlight on converting GBTC to a spot bitcoin ETF centered on Grayscale’s legal dispute with the SEC, LaValle played a crucial role in the background. He was responsible for securing launch partners and authorized participants, according to Unchained.
Nonetheless, the conversion has not been the success Grayscale anticipated. Since then, BlackRock’s iShares Bitcoin Trust (IBIT) has surpassed Grayscale’s ETF, managing over $87.9 billion in assets. GBTC’s assets have decreased to below $22 billion, based on SoSoValue data.
LaValle’s departure comes after the resignation of CEO Michael Sonnenshein last year, who was succeeded by Peter Mintzberg.
Earlier this month, the firm discreetly filed a draft S-1 registration statement with the SEC, signaling its intentions for a public offering.
