Edward McGee
About Edward McGee
- Chief Financial Officer of Grayscale Investments Sponsors, LLC (the “Sponsor”) and Principal Financial and Accounting Officer for ETH’s SEC filings; signed ETH’s Q3 2025 Form 10‑Q certifications and Section 906 certification as CFO .
- Serves on the Board of Directors of Grayscale Investments, Inc. (formed in the Sponsor’s October 22, 2025 reorganization), and previously served on the board of GSO Intermediate Holdings Corporation prior to the reorganization; Barry Silbert serves as Chair; Peter Mintzberg and Edward McGee also retain officer authority at the Sponsor .
- Signed the September 2, 2025 Consent Solicitation Statement letter to ETH shareholders in his capacity as CFO of the Sponsor .
- Notable operating development during his tenure: ETH began staking its Ether on October 6, 2025 under arrangements with the Custodian and third‑party staking providers, as disclosed in Q3 2025 subsequent events and related 8‑K exhibits .
Note: ETH filings reviewed do not disclose McGee’s age, education, or personal performance scorecard (TSR/revenue/EBITDA); ETH is a grantor trust with Sponsor-managed operations, and filings emphasize trust mechanics over individual executive bios .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Grayscale Investments Sponsors, LLC (ETH Sponsor) | Chief Financial Officer; Principal Financial and Accounting Officer for ETH filings | 2025–present | Principal financial stewardship of ETH’s reporting and certifications; signatory on 10‑Q and 8‑Ks . |
| GSO Intermediate Holdings Corporation (pre‑reorg parent) | Director | Pre‑Oct 22, 2025 | Board that managed and directed the Sponsor prior to the reorganization . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Grayscale Investments, Inc. (post‑reorg parent of Sponsor) | Director | Oct 22, 2025–present | Board now manages and directs the Sponsor; Mr. Silbert is Chair; Mintzberg and McGee retain officer authority at the Sponsor . |
Fixed Compensation
- ETH filings do not disclose individual executive pay (base salary/bonus) for Sponsor officers; instead, ETH discloses Sponsor‑level fees (the Sponsor’s Fee) charged to the trust at 0.15% per annum of the NAV Fee Basis Amount (waived to 0% for the first $2.0B of AUM through Jan 23, 2025; thereafter incurred and payable daily in Ether) .
Performance Compensation
ETH does not disclose individual performance award structures for Sponsor officers. However, the trust’s incentive architecture includes Sponsor‑level economics tied to staking:
| Mechanism | Metric/Term | Payment Mechanics | Governance/Notes |
|---|---|---|---|
| Sponsor’s Fee | 0.15% per annum of NAV Fee Basis Amount (post Jan 23, 2025) | Accrues daily; paid in Ether to the Sponsor; reduces Ether per Share and NAV over time . | |
| Sponsor’s Staking Fee (if/when applicable) | Per annum percentage of staking consideration earned by the Trust (rate set by Sponsor in its sole discretion, disclosed in filings) | Payable daily in arrears in Ether or other staking consideration; reflected in NAV methodology by subtracting accrued/unpaid Staking Fee . | |
| Scope of Staking | Trust began staking Oct 6, 2025 under arrangements with Custodian and third‑party providers | Liquidity sleeve maintained; staking risks and slashing/liquidity constraints disclosed . |
Conflict/Alignment disclosures:
- Proposal 2 explicitly highlights potential conflicts from a Sponsor’s Staking Fee (incentives to stake more, liquidity constraints for redemptions), with no shareholder approvals required for the fee rate (determined by the Sponsor; risk factor notes disenfranchisement concerns in Proposal 3) .
Equity Ownership & Alignment
| Item | Disclosure |
|---|---|
| ETH Shares beneficial ownership | “To the knowledge of the Sponsor, no person owns more than 5% of the outstanding Shares” (record date Sept 2, 2025) . |
| McGee’s ETH ownership, pledging, hedging | Not disclosed in ETH filings reviewed; no pledging/hedging disclosure for the executive in ETH documents . |
| Stock ownership guidelines | Not disclosed in ETH filings (trust structure with Sponsor officers) . |
Employment Terms
- Employment agreement, severance, change‑of‑control protections, non‑compete/non‑solicit, and clawback terms for McGee are not disclosed in ETH filings reviewed (trust/Sponsor structure) .
Board Governance
| Company | Board | Role | Since | Committees | Notes |
|---|---|---|---|---|---|
| Grayscale Investments, Inc. | Board of Directors | Director | Oct 22, 2025 | Not disclosed | Board now manages and directs the Sponsor; Barry Silbert is Chair; McGee also serves as Sponsor CFO . |
| GSO Intermediate Holdings Corporation | Board of Directors | Director | Pre‑Oct 22, 2025 | Not disclosed | Pre‑reorg body managing the Sponsor . |
Dual‑role implications:
- McGee’s concurrent executive role (CFO of the Sponsor) and directorship at Grayscale Investments concentrate influence across oversight and operations; filings do not provide independence designations or committee assignments for him .
Risk Indicators & Red Flags (relevant to incentives/governance)
- Staking risks: potential loss through penalties/slashing/inactivity leaks; inaccessibility/un‑staking delays; liquidity management via sleeves/financing; dependency on third‑party providers; uncertain regulatory/tax landscape .
- Sponsor’s Staking Fee: reduces net staking rewards to shareholders; fee percentage set by the Sponsor; conflict risk that Sponsor could prioritize higher staking levels despite liquidity needs .
- Amendment authority: Proposal 3 permits Sponsor to make amendments without shareholder consent (20‑day notice) including certain tax‑status‑sensitive changes with counsel opinion; risk of shareholder disenfranchisement .
- Certifications/controls: McGee signed SOX 302/906 certifications for Q3 2025, indicating responsibility for disclosure controls and ICFR assertions for ETH’s filings .
Investment Implications
- Limited transparency on individual executive compensation and equity ownership makes pay‑for‑performance alignment analysis at the officer level (including McGee) impracticable from ETH filings; investors must underwrite Sponsor‑level fee economics instead of executive‑level incentives .
- The Sponsor’s Staking Fee adds a new revenue stream for the Sponsor and is set at the Sponsor’s discretion, creating potential conflicts between maximizing Sponsor economics and maintaining shareholder liquidity and net staking yield; this governance setup warrants close monitoring of subsequent disclosures (fee rates, realized rewards, liquidity events) .
- McGee’s dual roles (CFO and director at the parent) concentrate financial oversight and governance influence during a period of material strategic change (launch of staking, amendment authority), which may raise independence considerations even though filings do not address independence status or committee assignments; investors should evaluate outcomes (e.g., staking allocation, fee accrual impact on NAV, redemption performance) rather than assumed checks and balances .
- Operational execution to date includes the commencement of staking on Oct 6, 2025; investors should track disclosures on staking consideration, any Sponsor’s Staking Fee accruals, and liquidity sleeves to assess potential selling pressure or NAV impacts tied to fee deductions and reward distributions .
Appendix (selected source references):
- Consent Solicitation and proposals: .
- Q3 2025 10‑Q (subsequent events; certifications): .
- Oct 6/9/14/24, 2025 8‑Ks (staking exhibits; admin agreement; board changes; reorg to Grayscale Investments): .
- 2024 10‑K (trust mechanics, fee, operations): .