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BlackRock plans one-for-three reverse split for iShares Ethereum ETF

The reverse split, approved July 31 and effective for trading on Oct. 6, would raise ETHA’s share price while leaving shareholder investment values unchanged.

Reported · Written up by our desk · Market Structure

BlackRock is preparing a one-for-three reverse split of its iShares Ethereum Trust ETF (ETHA), a move that will increase the fund’s nominal share price without changing the value investors hold, according to a CryptoSlate account of an SEC filing.

ETHA’s sponsor approved the reverse split on July 31. Shares held on the Oct. 5 record date will be combined into one when split-adjusted trading begins on Nasdaq on Oct. 6.

CryptoSlate said reverse splits can be viewed negatively in equity markets when companies use them to prop up depressed prices, though BlackRock did not provide an explanation. The fund’s prospectus gives the sponsor authority to take such action when the secondary-market price moves outside a desirable trading range.

The article estimates ETHA’s share price at about $14.15, down more than 37% this year, and says the split would lift it to roughly $42.45. It also estimates the outstanding share count would fall from about 384 million to 128 million, while ETHA’s year-to-date losses would not be reversed.

Latest closeEthereum $1,870.51 ▲0.1%|Nasdaq Comp. 26,584.99 ▲2.6%

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