BlackRock’s Spot Ethereum ETF ETHA to Execute 1-for-3 Reverse Split in October

BlackRock’s spot Ethereum exchange-traded fund, ETHA, will undergo a reverse split in October.

Unfolded reported on Aug. 4 that BlackRock plans to carry out a 1-for-3 reverse split for ETHA on Oct. 6.

Once the reverse split is completed, every three existing shares will be consolidated into one, increasing the fund’s net asset value per share. The move will not change the total value of investors’ holdings or the ETF’s total assets under management, which exceed $5 billion.

BlackRock expects the measure to lift ETHA’s share price from about $14 and narrow the bid-ask spread to about 2 basis points from roughly 7 basis points.

Industry participants view the reverse split as a step to improve the ETF’s trading structure rather than an event that would directly affect Ethereum’s price.