BlackRock's ETHA Suffers 27% Decline Ahead of Reverse Share Split
BlackRock's Ethereum ETF (ETHA) has seen a significant decline in value since its launch, falling nearly 27% from $26.59 to $19.47 as of September 18. This drop is in line with the performance of Ethereum itself, which has fallen 25.76% over the same period. The ETF's price action closely mirrors that of Ethereum, indicating a high level of correlation between the two.
BlackRock has announced plans to implement a 1-for-3 reverse share split for ETHA on October 6, with the goal of reducing trading friction and narrowing bid-ask spreads for market makers. This move will result in a decrease in the number of outstanding shares from 467,680,000 to approximately 155,893,333, effectively reducing investor holdings by one-third.
ETHA currently holds around 3% of Ethereum's total supply, with a value of roughly $8.6 billion based on its current holdings of 3,510,369 ETH. The fund has seen a cumulative net cash inflow of $12.84 billion and recorded a trading volume of $525.03 million in the past 24 hours.