Grayscale ETF Chief David LaValle to Depart Months Before IPO Amid BlackRock Fee Pressure

David LaValle, Grayscale’s global head of ETFs, will resign at the end of July 2025, according to a report by Unchained, citing people familiar with the matter. His departure comes just weeks after Grayscale confidentially filed an S‑1 registration statement with the SEC on July 14, signaling a planned IPO within the next three to six months.

LaValle, who joined Grayscale in August 2021, played a key role in converting the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF—a milestone following a landmark legal victory against the SEC in August 2023. “David’s leadership was instrumental in navigating the complex regulatory landscape for GBTC’s ETF conversion,” a Grayscale spokesperson told Unchained.

However, LaValle’s tenure also included challenges. GBTC, once the world’s largest crypto investment vehicle with roughly $25 billion in assets in 2021, had shrunk to under $21.6 billion by July 2025. Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) has surged to nearly $87.2 billion in assets under management. Its 0.25% fee, significantly lower than GBTC’s 1.5%, has been a major draw for investors, prompting outflows from GBTC and pressuring Grayscale to reassess its fee structure and strategy.

IPO Ambitions and Regulatory Hurdles

Grayscale’s confidential S‑1 filing reflects a strategic pivot aimed at expanding its public presence and investor base. The confidential route allows the company to engage in pre-marketing discussions and make adjustments before a public debut. However, analysts warn that high management fees and continued asset outflows could dampen investor appetite.

Adding to the complexity, Grayscale is still navigating regulatory uncertainty. The SEC recently paused its review of Grayscale’s proposed Digital Large Cap Fund (GDLC) ETF, which would offer exposure to a basket of cryptocurrencies. This delay underscores persistent regulatory challenges for Grayscale, which has also filed for spot ETFs tied to Ethereum, Solana, XRP, and Cardano.

Broader Leadership Reshuffle and Market Outlook

LaValle’s departure follows other leadership changes at Grayscale. In May 2024, CEO Michael Sonnenshein stepped down and was replaced by Peter Mintzberg. A company spokesperson emphasized the firm’s intent to strengthen its leadership team to support the next phase of growth, echoing the strategic rationale behind Zhang’s appointment

As Grayscale moves toward its IPO and continues to reshape its executive team, it faces a pivotal moment. The company’s ability to lower fees, secure ETF approvals, and respond to competitive pressure will determine whether it can regain market dominance—or continue to cede ground to lower-cost rivals like BlackRock and Fidelity.