Simon Koster

About Simon Koster

Simon Koster is a Director on the Board of Grayscale Investments, Inc., the entity that manages and directs the affairs of Grayscale Investments Sponsors, LLC—the Sponsor of Grayscale Ethereum Mini Trust ETF (ETH). He was appointed to the predecessor board (GSO Intermediate Holdings Corporation) on October 13, 2025, and continued as a director following the October 22, 2025 reorganization that established Grayscale Investments as the sole managing member of the Sponsor . Koster is Chief Strategy Officer at Digital Currency Group, Inc. (DCG), and holds a B.S. from Rutgers University and a Master’s in Engineering from the University of Michigan . He is not independent, given his executive role at DCG and multiple board roles within DCG-affiliated entities that control the Sponsor .

Past Roles

External Roles

Board Governance

• Role and board: Director at Grayscale Investments (Sponsor’s managing member); Barry Silbert serves as Chair; board also includes Mark Shifke, Peter Mintzberg, Edward McGee .
• Independence: Not independent due to executive position at DCG and board service across DCG subsidiaries that control the Sponsor .
• Committee assignments and chair roles: Not disclosed in ETH’s recent DEF 14A, 8-Ks, or 10-Q .
• Attendance and engagement: Not disclosed in ETH filings reviewed .
• Board changes context: Grayscale announced plans to expand its board to include independent directors (contextual statement, not naming Koster as independent) .

Other Directorships & Interlocks

• DCG controls Grayscale Investments (the Sponsor’s managing entity) and consolidates DCG Grayscale Holdco, Grayscale Investments, GSOIH, GSO, and the Sponsor—creating structural interlocks across the governance stack for ETH .
• Koster’s board roles at Foundry, Luno, Fortitude, and Yuma (all DCG affiliates) reinforce interlocks with entities in DCG’s portfolio .

Expertise & Qualifications

• Strategy and portfolio management across digital assets and venture investing (DCG CSO) .
• Real estate development and operating leadership (JDS Development Group; The Collective; DCG Real Estate) .
• Education: B.S., Rutgers University; Master’s in Engineering, University of Michigan .

Equity Ownership

Governance Assessment

• Independence and conflicts (RED FLAG): Koster is DCG’s CSO and holds multiple DCG-affiliated board seats while DCG controls Grayscale Investments and the Sponsor. This undermines independence and raises conflict potential when Sponsor decisions affect ETH (fees, staking, amendments) .
• Sponsor’s unilateral amendment power (RED FLAG): Proposal 3 allows the Sponsor to amend the Trust Agreement without shareholder consent, subject only to a 20-day notice for materially adverse changes and tax-opinion conditions—disenfranchising shareholders and concentrating governance power with the Sponsor .
• Staking program governance and liquidity risk: ETH began staking on October 6, 2025; staking relies on third-party providers and introduces slashing/inactivity risks and redemption timing mismatches. Sponsor plans liquidity sleeves and possible short-term financing, but availability is not assured .
• Sponsor’s Staking Fee discretion (RED FLAG): Proposal 2 permits an uncapped Sponsor’s Staking Fee determined at Sponsor’s sole discretion, directly reducing net staking rewards to shareholders and creating incentive misalignment .
• Tax uncertainty for staking: The Sponsor relies on “should” level opinions for grantor trust status; IRS guidance is limited—raising risk of grantor trust failure or adverse tax outcomes (including UBTI, withholding for non-U.S. investors, or corporate taxation) .
• Board effectiveness signal: Grayscale indicated intent to add independent directors, but ETH filings do not disclose committee structures or director performance metrics; thus, transparency into board oversight and Koster’s governance contributions is limited .

Net take: Koster’s deep affiliation with DCG and DCG-controlled entities overseeing ETH’s Sponsor creates structural conflicts and weak independence. Combined with the Sponsor’s broad unilateral powers over ETH’s Trust Agreement and fee structure, investor alignment depends more on Sponsor discretion than robust board counterweights—a governance posture that can weigh on investor confidence in ETH during staking implementation .

Notes on Compensation & Committees

• Director compensation (cash/equity), committee memberships/chair roles, meeting fees, and attendance for Koster are not disclosed in ETH’s DEF 14A (consent solicitation focused on Trust amendments), nor in the reviewed 8-Ks/10-Q; ETH is a Delaware statutory trust with a Sponsor-managed structure, not a typical corporate board with disclosed director pay and committee charters .
• Sponsor fees: ETH’s Sponsor’s Fee was waived for six months and is 0.15% thereafter; this is Sponsor-level compensation rather than director compensation .

Additional Context: Staking and Sponsor Controls

• ETH’s DEF 14A sought shareholder consent to enable staking, a Sponsor’s Staking Fee, and a process to amend the Trust Agreement with notice rather than consent—each recommended “FOR” by the Sponsor and board .
• ETH began staking October 6, 2025 per subsequent events disclosure .