Grayscale Investments, a prominent crypto asset manager, witnessed a significant shake-up in its board of directors as its CEO and president resigned on the same day the company resubmitted its Bitcoin ETF application. Barry Silbert, the CEO of Digital Currency Group (DCG), Grayscale’s parent company, stepped down, fueling speculation about the potential impact on the pending Bitcoin ETF decision by the Securities and Exchange Commission (SEC). Grayscale’s amended S-3 filing included notable changes, such as a shift to a cash creation model.
Mark Shifke, DCG’s chief financial officer, was appointed as the new chairman of the board at Grayscale. The move is seen as crucial for Grayscale’s pursuit of converting its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. Meanwhile, the amended filing was noted for its adoption of a cash creation model, a development highlighted by senior Bloomberg ETF analyst Eric Balchunas.
Grayscale Board Restructuring Continues with Resignations and New Appointments
Grayscale Investments announced a series of changes to its board of directors, with the resignation of CEO Barry Silbert and president Mark Murphy, effective January 1, 2024. The company filed this update with the United States Securities and Exchange Commission (SEC). The new board members include Mark Shifke, Matthew Kummell, and Edward McGee. Grayscale, a subsidiary of DCG, is actively involved in the pursuit of a Bitcoin spot exchange-traded fund, having secured a legal victory earlier in the year when a court ruled against the SEC’s rejection of its Bitcoin ETF application.
The restructuring aims to position Grayscale for ongoing developments in the cryptocurrency market, particularly in its efforts to navigate the regulatory landscape surrounding Bitcoin ETFs.
Tether Minting Raises Questions Amid CEO’s Clarification
Tether, the operator of the world’s largest stablecoin, recently minted one billion USDT (Tether) on Christmas Day, labeled as “authorized but not issued.” Paolo Ardoino, Tether’s CEO, clarified that this transaction was an “inventory replenish” on the Ethereum blockchain. In traditional finance, inventory replenishment refers to ordering stock in anticipation of customer demand. Tether’s version involves creating new USDT stored in its treasury inventory as “authorized but not issued,” emphasizing that these tokens are not part of the total market capitalization as they are yet to be released into circulation. The move sparked some skepticism within the crypto community, raising questions about Tether’s practices and intentions.
According to Tether’s transparency data, as of December 26, 2023, $925 million in USDT remains “authorized but not issued” on the Ethereum blockchain.
