Barry Silbert
About Barry Silbert
Barry Silbert was appointed Director and Chairman of the Board overseeing the Sponsor of Grayscale Ethereum Trust ETF (ETHE) on August 4, 2025. He is the Founder and CEO of Digital Currency Group (DCG) and, in 2024, founded Yuma, a DCG subsidiary focused on decentralized AI where he serves as CEO. Prior to DCG, he founded and led SecondMarket (acquired by Nasdaq) and earlier worked as an investment banker; he graduated with honors from Emory University’s Goizueta Business School. His appointment reflects founder-level strategic involvement in the Sponsor; age is not disclosed in ETHE filings .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Digital Currency Group (DCG) | Founder & CEO | Founded 2015; current | Founder/operator of DCG; parent of ETHE’s Sponsor, extensive crypto ecosystem influence |
| Yuma (DCG subsidiary) | Founder & CEO | Founded 2024; current | Decentralized AI-focused; invests in and scales the Bittensor network |
| SecondMarket | Founder & CEO | Prior to DCG; date not disclosed | Built secondary markets platform; later acquired by Nasdaq |
| Investment Banking (NY) | Investment Banker | Early career; date not disclosed | Finance and deal execution background |
External Roles
| Organization | Role | Tenure | Notes |
|---|---|---|---|
| DCG | Founder & CEO | 2015–present | DCG is the indirect parent of ETHE’s Sponsor; affiliates include Grayscale Investments, Foundry, Fortitude, Luno, and Yuma |
| Yuma | Founder & CEO | 2024–present | DCG subsidiary focused on decentralized AI/Bittensor |
Board Governance
- Governance structure: ETHE (the Trust) has no directors, officers, or employees; all functions are delegated to the Sponsor (Grayscale Investments Sponsors, LLC) and its affiliates under the Trust Agreement .
- Sponsor Board: As of Aug 4, 2025, Barry Silbert was appointed Director and Chairman of the Sponsor’s Board; Grayscale indicated potential expansion to include independent directors (status not yet disclosed) .
- Committees: The Sponsor has an Audit Committee; as of FY 2024 it consisted of Edward McGee (CFO) and Hugh Ross (COO). Committee composition after Aug 2025 was not disclosed in ETHE filings .
- Independence: Silbert is Founder & CEO of DCG, the indirect parent of the Sponsor, creating a related-party affiliation that is not independent of the controlling shareholder .
- Attendance and engagement: Not disclosed in ETHE filings.
Fixed Compensation
| Component | Amount/Terms | Notes |
|---|---|---|
| Director annual retainer (cash) | Not disclosed | ETHE has no board/directors; director compensation at sponsor level is not disclosed in ETHE filings |
| Committee membership fees | Not disclosed | Not disclosed in ETHE filings |
| Committee chair fees | Not disclosed | Not disclosed in ETHE filings |
| Meeting fees | Not disclosed | Not disclosed in ETHE filings |
Performance Compensation
| Metric Category | Specified Metrics | Vesting/Triggers |
|---|---|---|
| Incentive-based compensation (Trust-level) | None; Trust states it does not issue incentive-based compensation | Sponsor adopted a clawback policy to comply with SEC/Exchange rules; policy applies if incentive comp were ever awarded and a restatement occurs |
Other Directorships & Interlocks
| Entity | Relationship | Interlock/Conflict Detail |
|---|---|---|
| Kraken | DCG minority interest holder (<1%) | Kraken is one of the Digital Asset Trading Platforms included in ETHE’s Index; filings note investor concern that DCG could influence market data in ways that benefit DCG (e.g., affecting Index Price and Sponsor fees), though DCG does not control Kraken |
| Grayscale-affiliated service providers | Sponsor and affiliates | Sponsor may be disincentivized from replacing affiliated service providers who receive fees; affiliated roles create potential conflicts |
Expertise & Qualifications
- Blockchain/digital assets pioneer; among earliest and most active investors since 2012 .
- Founder/operator experience across DCG ecosystem companies; scaled portfolio of 250+ early-stage investments across >35–40 countries (range as disclosed in filings) .
- Capital markets and investment banking experience; Emory University (Goizueta Business School) honors graduate .
Equity Ownership
| Item | Disclosure | Period/Date |
|---|---|---|
| Beneficial owners >5% of ETHE shares | None known to the Sponsor (no person >5%) | Record date September 2, 2025; 130,168,500 shares outstanding |
| DCG share purchase authorization | Up to $200 million across ETHE and selected Grayscale products; no ETHE shares purchased under the authorization through Feb 24, 2025 | Authorization approved March 2, 2022; zero ETHE shares purchased by DCG over the disclosed period |
| Director investments in Grayscale products | Directors are generally permitted to invest in Grayscale funds/vehicles on substantially similar terms | Not specific to Silbert amounts; policy disclosure on 8-K |
| Pledging/Hedging of ETHE shares | Trust Agreement restricts transfer/pledge except as permitted; pledges require Sponsor consent; notice mechanics defined | DEF 14A Trust Agreement sections on transfers and notices |
Governance Assessment
- Conflicts of interest: Filings explicitly warn of potential conflicts among the Sponsor/affiliates and the Trust, including the absence of broader fiduciary duties beyond the Trust Agreement, related-party service providers receiving fees, and resource allocation across DCG affiliates; the Sponsor may favor its interests/affiliates over shareholders, provided it does not act in bad faith .
- Index/market data interlock risk: DCG’s minority stake in Kraken, a platform in ETHE’s Index, raises perceived risk of influence on market data impacting Index-derived NAV and Sponsor fees, despite no control; filings acknowledge potential investor confidence impact .
- Independence: Silbert’s role as DCG Founder & CEO ties him to the controlling parent of the Sponsor, indicating non-independence relative to the Sponsor; Grayscale contemplated adding independent directors, but subsequent independence designations/appointments are not disclosed .
- Clawback and incentive governance: The Trust adopted a clawback policy to comply with SEC/exchange rules; however, the Trust does not issue incentive compensation, limiting performance-pay alignment levers at the Trust level .
RED FLAGS
- Explicit conflict risk: Sponsor and affiliates may prioritize their own interests; limited fiduciary duty scope beyond the Trust Agreement .
- Related-party exposure: DCG’s minority interest in Kraken, which contributes to ETHE’s Index; perceived data influence concerns could affect investor sentiment and trading prices .
- Affiliated service providers: Potential disincentive to replace affiliates who receive fees; arm’s-length processes not assured .
Implications for investor confidence: Governance reliance on the Sponsor and DCG-affiliated ecosystem increases perceived conflict risk. The contemplated addition of independent directors could mitigate concerns if implemented with robust committee independence (Audit/Comp/Nominating) and clear conflict-resolution protocols, but current ETHE filings do not confirm such changes .