Edward McGee
About Edward McGee
Edward McGee is Chief Financial Officer (Principal Financial and Accounting Officer) of Grayscale Investments Sponsors, LLC (the “Sponsor”) for Grayscale Bitcoin Cash Trust (BCH) (“BCHG”) and has served as a director of the Sponsor since January 2024. He signs BCHG’s Sarbanes‑Oxley 302/906 certifications and 8‑K/10‑Q filings in his capacity as Sponsor CFO . Age 41; BS in Accounting (University of Tampa), MAcc (Rutgers), CPA (NY) . BCHG is a Delaware statutory grantor trust with no operating revenues/EBITDA; performance is driven by Bitcoin Cash (BCH) holdings and secondary‑market premium/discount dynamics. From Aug 18, 2020–Jun 30, 2025, BCHG’s shares traded at an average 21% discount (max premium 1,852%; max discount 59%); on Jun 30, 2025, shares traded at a 10% discount to NAV per share .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Grayscale Investments Sponsors, LLC | Chief Financial Officer; Director | CFO since Jan 2022; Director since Jan 2024 | Principal financial and accounting officer for Sponsor of BCHG; signs SOX certifications, oversees disclosures and controls |
| Grayscale Investments Sponsors, LLC | VP, Finance & Controller | Jun 2019–Dec 2021 | Led finance/controllership prior to promotion to CFO |
| Goldman Sachs & Co. | Vice President, Accounting Policy | 2014–2019 | SEC reporting coverage; US GAAP policy for multiple divisions |
| Ernst & Young | Auditor | 2011–2014 | Assurance services to public companies |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| — | — | — | No other public company directorships disclosed in BCHG filings |
Fixed Compensation
BCHG (the Trust) has no directors, officers, or employees; all management is performed by the Sponsor. Item 11 (Executive Compensation) is “Not applicable,” and the Trust does not disclose Sponsor officer salary/bonus/equity. McGee’s base pay and cash compensation are not disclosed in BCHG filings .
| Component | 2024–2025 disclosure | Source |
|---|---|---|
| Base salary (CFO, Sponsor) | Not disclosed in BCHG filings | |
| Cash bonus/annual incentive | Not disclosed in BCHG filings | |
| Perquisites | Not disclosed in BCHG filings |
Performance Compensation
No equity/option/PSU/RSU grants or performance metric weightings for Sponsor officers are disclosed in BCHG filings. The Trust’s fee‑sharing and index/license agreements are disclosed at the product level but not tied to individual executive compensation .
| Incentive element | Metric/weight | Target | Actual/payout | Vesting | Source |
|---|---|---|---|---|---|
| Sponsor officer equity/bonus | Not disclosed | — | — | — |
Equity Ownership & Alignment
The Trust does not report beneficial ownership for Sponsor executives. As of the Sep 25, 2025 record date, 47,123,300 Trust shares were outstanding; the Sponsor states, “to its knowledge, no person owns more than 5%” of BCHG shares. Transfer restrictions under Rule 144 apply to privately placed shares; legends may be removed after the six‑month holding period subject to Sponsor consent, affecting float and potential selling pressure. No pledging/hedging guidelines for Sponsor officers are disclosed in BCHG filings .
| Item | Disclosure | Source |
|---|---|---|
| Total BCHG shares outstanding (Record Date) | 47,123,300 (Sep 25, 2025) | |
| >5% owners | “To the knowledge of the Sponsor, no person owns more than 5%” | |
| Exec/Sponsor insider ownership | Not disclosed | |
| Pledging/hedging | Not disclosed | |
| Rule 144/transfer | Six‑month minimum holding period; Sponsor consent process governs legend removal and resale |
Employment Terms
BCHG disclosures do not include individual employment agreements, severance, change‑of‑control (CoC), non‑compete, or clawback terms for Sponsor officers. McGee’s start/tenure and credentials are disclosed in biography; no severance/CoC multiples or triggers are disclosed at BCHG .
| Term | Disclosure | Source |
|---|---|---|
| Start in current role | CFO since Jan 2022 | |
| Contract term/auto‑renewal | Not disclosed | |
| Severance/CoC | Not disclosed | |
| Clawback/tax gross‑ups | Not disclosed |
Board Governance (Director service, committees, independence)
- Director roles: McGee serves on the Sponsor’s board. In FY2025 the Sponsor’s board comprised Barry Silbert, Mark Shifke, Matthew Kummell, Peter Mintzberg, and Edward McGee; the Sponsor has an Audit Committee (membership not disclosed). Post‑reorganization (Oct 22, 2025), Grayscale Investments became managing member of the Sponsor and its board (Silbert—Chair, Shifke, Koster, Mintzberg, McGee) manages the Sponsor’s affairs; McGee retains officer authority .
- Independence/dual roles: McGee is both CFO and a director, and the board includes executives/founder; Grayscale announced consideration of adding independent directors in 2025 .
| Board/committee | Role | Years | Notes |
|---|---|---|---|
| Sponsor Board (pre‑Oct 22, 2025) | Director | Since Jan 2024 | Five‑member board; includes CEO and founder |
| Grayscale Investments Board (post‑Oct 22, 2025) | Director | Since Oct 22, 2025 | Manages Sponsor; Silbert Chair |
| Audit Committee (Sponsor) | Committee exists | — | Membership not disclosed |
| Attendance/Lead Independent/Exec sessions | Not disclosed | — | — |
Product‑Level Economics Influencing Executive Incentives
While individual pay is undisclosed, the Sponsor’s revenue model and 2025 governance changes create structural incentives that can influence executive priorities:
| Item | 2025 status/change | Relevance to incentives | Source |
|---|---|---|---|
| Sponsor’s Fee | 2.5% of NAV Fee Basis Amount; accrues daily and, following Proposal 2, payable daily in arrears (previously monthly) | Fee revenue scales with AUM/NAV and BCH price; daily pay improves Sponsor cash flow predictability | |
| Creation/Redemption mechanics | Proposal 1 approved to permit cash creations/redemptions via Authorized Participants and Liquidity Providers (with protections) | Enabling arb flows can reduce premium/discount, potentially increase demand/AUM | |
| Omnibus/Prime broker | Proposal 3 permits omnibus (Settlement Balance) to facilitate creations/redemptions; Prime Broker agreement executed | Operational efficiency for APs; may tighten spreads and support flows | |
| Amendments governance | Proposal 4 allows Sponsor to amend with notice (20 days) without shareholder vote under certain conditions; risks of perceived disenfranchisement noted | Greater discretion can expedite product/ops changes, though governance optics risk | |
| Premium/discount profile | Avg discount 21% (Aug 2020–Jun 2025); 10% discount as of Jun 30, 2025 | Narrowing discount may support secondary demand and AUM growth, enhancing fee base |
Risk Indicators & Red Flags (governance/product level)
- Shareholder protections: Sponsor’s expanded amendment power could “disenfranchise shareholders” by reducing consent requirements; trust notes potential misalignment if amendments do not align with shareholder interests .
- Operational counterparties: Use of omnibus accounts/Prime Broker introduces counterparty/insolvency risks to BCH held in omnibus (Trust would be unsecured creditor of Prime Broker for omnibus balances) .
- Market structure: Persistent premium/discount volatility indicates supply/demand frictions; the Trust acknowledges deviations may be “substantial” absent ongoing redemptions .
Say‑on‑Pay & Compensation Committee
Not applicable. BCHG is a grantor trust with no executive compensation disclosure and no say‑on‑pay; the Sponsor has an Audit Committee, but a compensation committee is not disclosed in BCHG filings .
Expertise & Qualifications
| Attribute | Detail | Source |
|---|---|---|
| Education | BS Accounting (Univ. of Tampa); MAcc (Rutgers); CPA (NY) | |
| Technical | SEC reporting, US GAAP policy, controllership | |
| Age | 41 | |
| SOX oversight | Signs SOX 302/906 certifications for BCHG |
Investment Implications
- Alignment and incentives: Individual pay metrics are undisclosed, but the Sponsor’s 2.5% fee on NAV (now payable daily) creates a clear economic incentive to drive AUM/NAV via facilitating creations/redemptions, reducing discounts, and maintaining secure/efficient custody and AP infrastructure—areas within the CFO’s operational and control purview .
- Governance watch‑items: The Sponsor’s broadened amendment authority (20‑day notice, no vote) and use of omnibus accounts improve agility but elevate governance and counterparty‑risk optics; investors should monitor implementation details and disclosures for tax/grantor trust compliance safeguards and risk mitigants .
- Trading signals: Approved proposals to enable cash creations/redemptions and Prime Broker arrangements could be catalysts for narrowing BCHG’s discount to NAV; track operational go‑live timing in 8‑Ks and subsequent premium/discount updates (the Trust historically shows wide deviations) .
- Retention/continuity: McGee’s dual role (CFO + director) and continued authority post‑reorganization suggest continuity of financial control and governance at the Sponsor; Grayscale has indicated plans to consider adding independent directors, which could strengthen oversight and investor confidence if implemented .