BlackRock's Ethereum ETF Prepares for Reverse Split on October 6

BlackRock's spot Ethereum exchange-traded fund, ETHA, will undergo a reverse split in October to improve its trading structure. The move is expected to increase the fund's net asset value per share and narrow the bid-ask spread. Every three existing shares of ETHA will be consolidated into one after the 1-for-3 reverse split on October 6.

The total value of investors' holdings or the ETF's total assets under management, which exceed $5 billion, will not change as a result of the reverse split. Industry participants view the measure as a way to lift ETHA's share price from about $14 and reduce trading costs.