BlackRock Squeezes Trading Costs with ETHA Share Reverse Split

BlackRock's iShares Ethereum Trust ETF (ETHA) is undergoing a one-for-three reverse share split on October 6, as per an SEC filing. The sponsor, iShares Delaware Trust Sponsor LLC, approved the split on July 31. This means every three ETHA shares outstanding by October 5 will be consolidated into one, increasing the fund's per-share net asset value without changing total shareholder holdings or aggregate assets.

No fractional shares will be issued; instead, any remainder will be redeemed and paid out in cash to shareholders' brokerage accounts. Bloomberg Senior ETF Analyst Eric Balchunas noted that this adjustment should lower trading costs from roughly seven basis points to about two.

The split comes as ETHA has fallen alongside Ether itself, with a price near $14 this week, down around 40% year-to-date. Despite the decline, it remains the largest spot Ether ETF by assets, followed closely by Grayscale's ether funds. Reverse splits have been used in crypto ETFs before, including Grayscale's Bitcoin and Ethereum Mini Trusts.