BlackRock Ethereum Trust ETF to undergo reverse share split in October
BlackRock is set to restructure its spot Ethereum exchange-traded fund in October as the product trades at a lower share price after Ethereum's decline this year. The move combines every three ETHA shares into one while leaving the total value of investors' holdings and the fund's assets unchanged.
Highlights
- BlackRock will execute a 1-for-3 reverse share split for its Ethereum Trust ETF (ETHA) on Oct. 6, consolidating three shares into one.
- The reverse split aims to lift ETHA's net asset value per share and reduce trading costs from 7 basis points to around 2 basis points, according to Eric Balchunas.
- ETHA is trading near $14 and has declined about 40% year-to-date, mirroring weakness in Ethereum’s performance.
October split plan for ETHA
As reported by The Block, citing a filing with the U.S. Securities and Exchange Commission, BlackRock plans to carry out a 1-for-3 reverse share split for its Ethereum Trust ETF on Oct. 6. The change means each set of three ETHA shares is consolidated into one share, lifting the fund's net asset value per share without altering the overall value of shareholder positions.The filing says the reverse split does not change the value of the fund's assets. BlackRock does not explain the reason for the move in the filing text provided, but the higher per-share price is expected to affect how cheaply the ETF can be traded.
Trading costs and market context
Bloomberg Senior ETF Analyst Eric Balchunas says on social media that the adjustment will lower trading costs to about 2 basis points from 7 basis points. He adds that ETF issuers view a 7-basis-point spread as a problem and are making changes to reduce it.ETHA is down about 40% year-to-date, in line with weakness in Ethereum, and is changing hands at about $14 on Tuesday. That lower share price helps explain why a reverse split can improve trading mechanics for the fund without changing its underlying exposure.
In our earlier article on Nasdaq-100 ETF competition, we covered how BlackRock and State Street plan to launch new low-cost Nasdaq-100 ETFs in mid-2026, a move expected to pressure fees and potentially broaden investor access. We also noted that despite the incoming price competition, Invesco’s QQQM retains an edge due to liquidity and established market presence, alongside a supportive technical backdrop for the index.
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
