BlackRock plans to implement a one-for-three reverse share split for its Ethereum Trust ETF on Oct. 6, according to a filing with the U.S.
Securities and Exchange Commission.
The split will consolidate every three ETHA shares into one, increasing the fund’s per-share net asset value without changing the value of investors’ holdings or the fund’s assets, the filing said.
"This will lower cost to trade from 7bps to 2bps-ish," Bloomberg Senior ETF Analyst Eric Balchunas said on social media.
"Gotta love how ETF issuers consider a 7bp spread a PROBLEM and is adjusting to cut it to 2bps." Although the asset manager did not explain the move, the price adjustment per share should make trading ETHA cheaper, as suggested by Balchunas.
