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Just as cryptocurrency fans are expecting the first regulatory approvals of exchange-traded funds that hold Bitcoins, the sponsor of the Grayscale Bitcoin Trust said that its chairman will resign.

Barry Silbert will step down Jan. 1 from the board that he chaired at Grayscale Investments LLC. Also resigning from the board is Mark Murphy, the chief operating officer of Digital Currency Group, the blockchain enterprise that Silbert founded and leads.

The announcement said that their places on the Trusts board will be taken by other executives from the Digital Currency Group. Chief Financial Officer Mark Shifke will become chairman. Matt Kummell, vice president of operations, will join the board, as will Grayscale Investments financial chief Edward McGee.

It wasnt clear whether the board changes are related to the Grayscale trusts effort to win the U.S. Securities and Exchange Commissions approval to convert to an ETF that buys crypto tokens on the spot market. After a federal appeals court overturned the SECs rejection of that plan, the agency decided not to appeal the courts ruling. Investors have bid up the price of tokens such as Bitcoin this year, in the expectation that the SEC will approve ETF applications from Grayscale and rivals such as BlackRock .

Barrons called Grayscale Investments about Silberts resignation, but got no immediate answer.

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Despite the board shuffling, the executives remain unchanged at the trusts sponsor Grayscale investments. Michael Sonnenshein continues as its chief executive. He has been making changes in the fee structure of the trust, in anticipation of an ETF conversion.

As long as their executive management is staying, it doesnt bother me, said Michael Legg, an analyst at Benchmark who follows several crypto stocks, but not Grayscale. He is optimistic that SEC approval of spot ETFs will benefit Bitcoin miners such as CleanSpark.

Silberts leaving the board may reduce distractions for everyone. His Digital Currency Group has been defending litigation filed against its crypto ventures. In January, the SEC sued its Genesis Global Capital exchange, alleging that it sold unregistered securities. Genesis has filed a motion to dismiss the suit, but U.S. District Court judge Edgardo Ramos of the Southern District of New York is allowing discovery to continue while he decides on the motion.

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Write to Bill Alpert at william.alpert@barrons.com

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Chairman Leaves Grayscale Bitcoin Trusts Sponsor as Investors Await Call on ETF - Barron's