BlackRock's ETHA Reverse Split Set to Boost Trading Efficiency

BlackRock is preparing to combine every three shares of its iShares Ethereum Trust ETF (ETHA) into one on October 6, a move that will lift ETHA's share price from $14.15 to about $42.45 and potentially reduce trading costs.

The reverse split, which was approved by the fund's sponsor on July 31, is not intended to delist ETHA but rather to improve its price profile and trading costs.

At current prices, a one-cent spread would represent about seven basis points of ETHA's share price. After the consolidation, the same one-cent spread would equal about two basis points.

Bloomberg Intelligence ETF analyst Eric Balchunas noted that this reduction in trading costs could make buying Ethereum through ETHA 70 times cheaper than purchasing it directly on Coinbase.