Simon Koster
About Simon Koster
Simon Koster serves on the board that manages the affairs of Grayscale Investments, the sole managing member of Grayscale Operating, LLC, which is the sole member of Grayscale Investments Sponsors, LLC—the Sponsor of ETHE. He was appointed as a director on October 13, 2025 and remains on the Grayscale Investments Board following the October 22, 2025 reorganization . Koster is Chief Strategy Officer at Digital Currency Group (DCG); he holds a B.S. from Rutgers University and a Master’s degree in Engineering from the University of Michigan .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Digital Currency Group (DCG) | Chief Strategy Officer; formerly CEO of Real Estate | Not disclosed | Leads investment team across digital assets and subsidiaries |
| The Collective | Chief Executive Officer | Not disclosed | Operational leadership (real estate) |
| JDS Development Group | Real estate acquisitions/development executive | ~10 years (exact dates not disclosed) | Led major residential, hospitality, mixed-use projects |
External Roles
| Organization | Role | Start Year | Affiliation |
|---|---|---|---|
| Foundry | Director | 2023 | DCG/Grayscale affiliate |
| Luno | Director | 2023 | DCG/Grayscale affiliate |
| Fortitude | Director | 2024 | DCG/Grayscale affiliate |
| Yuma | Director | 2025 | DCG/Grayscale affiliate |
Board Governance
- Board body relevant to ETHE: ETHE has no directors; all management functions are conducted by the Sponsor. Grayscale Investments’ Board manages and directs the affairs of the Sponsor; members include Barry Silbert (Chair), Mark Shifke, Simon Koster, Peter Mintzberg, and Edward McGee .
- Committee assignments: Not disclosed for the Grayscale Investments Board. The Sponsor’s prior Audit Committee (pre-reorganization) comprised different executives; no current committee detail for the Grayscale Investments Board was found in filings .
- Independence: Koster is DCG’s Chief Strategy Officer; DCG is the consolidated parent of Grayscale Investments and the Sponsor, indicating he is an affiliated—rather than independent—director under typical market standards .
- Attendance/engagement: Not disclosed in ETHE or Sponsor filings reviewed .
- Tenure on current board: Appointed October 13, 2025; continues post-October 22, 2025 reorganization .
- Lead Independent Director/executive sessions: Not disclosed .
Fixed Compensation
| Component | Amount/Terms |
|---|---|
| Annual retainer (cash) | Not disclosed in ETHE/Sponsor filings |
| Committee membership fees | Not disclosed |
| Committee chair fees | Not disclosed |
| Meeting fees | Not disclosed |
| Equity compensation (annual grants, DSUs/RSUs) | Not disclosed |
| Director stock ownership guidelines | Not disclosed |
ETHE is a trust; director compensation for the Sponsor’s board is not presented in ETHE’s DEF 14A, 10-K FY2024 or the 8-Ks reviewed .
Performance Compensation
| Metric | Target | Actual | Vesting/Measurement Window |
|---|---|---|---|
| Not disclosed (e.g., revenue, EBITDA, TSR, ESG goals) | — | — | — |
No performance-linked director compensation disclosures for Koster were found in ETHE or Sponsor filings .
Other Directorships & Interlocks
| Counterparty | Nature of Relationship | Potential Interlock/Overlap |
|---|---|---|
| DCG (parent) | Koster is CSO; DCG is consolidated parent of Grayscale Investments/Sponsor | Affiliated oversight of Sponsor managing ETHE |
| Foundry, Luno, Fortitude, Yuma | Koster director; all are DCG/Grayscale affiliates | Information flow and related-party exposure across crypto infrastructure, exchange, mining, and AI ventures |
Expertise & Qualifications
- Strategic leadership across digital assets; portfolio oversight spanning wholly owned subsidiaries and 250+ early-stage companies globally .
- Deep real estate operations and development background (JDS Development; CEO roles at The Collective and DCG Real Estate) .
- Education: B.S. (Rutgers), Master’s in Engineering (University of Michigan) .
Equity Ownership
| Item | Detail |
|---|---|
| Total ETHE beneficial ownership (Koster) | Not disclosed |
| Ownership as % of ETHE shares outstanding | Not disclosed; Sponsor states no >5% holders of ETHE shares as of record date |
| Vested vs. unvested shares; options | Not disclosed |
| Shares pledged as collateral | Not disclosed |
The DEF 14A records that “no person” owns more than 5% of ETHE shares as of September 2, 2025; it does not provide director-level holdings for Koster .
Governance Assessment
- Alignment and independence risk: Koster is DCG’s CSO and sits on multiple DCG/Grayscale affiliate boards, indicating affiliated status rather than independence; this can constrain minority investor confidence when the Sponsor’s board sets ETHE’s governance and fee policies .
- Sponsor economics and shareholder protections: The 2025 DEF 14A Proposals 1–3 materially affect ETHE governance and economics:
- Proposal 2 authorizes a discretionary, daily Sponsor’s Staking Fee deducted from staking consideration, directly reducing shareholder rewards and introducing potential conflicts to maximize fee take .
- Proposal 3 permits Sponsor-led amendments without shareholder consent (with a 20-day notice), raising disenfranchisement concerns and elevating tax classification risks, subject to opinion-based safeguards .
- Proposal 1 enables staking subject to tax comfort, with liquidity management and slashing risks; Sponsor anticipates staking “all” Ether except carved-out sleeves, increasing operational dependencies on third-party providers .
- RED FLAGS
- Affiliated director status and multiple interlocks within DCG ecosystem .
- Discretionary Sponsor’s Staking Fee that can materially reduce net staking rewards to shareholders .
- Amendment process moving from consent to notice-only for materially adverse changes .
- Liquidity/settlement risks from staking mechanics (activation/exit delays; reliance on providers; slashing) .
- Not disclosed: No data found on Koster’s board committee roles, attendance, director compensation mix, or ETHE share ownership/pledging in the reviewed filings .
Implications: Investors should treat Koster as an affiliated director with significant influence through DCG, monitor Sponsor actions on staking program initiation and fee levels, and weigh the reduced shareholder consent safeguards under Proposal 3 against operational convenience touted by the Sponsor .