BlackRock's Rare ETH Reverse Split Set to Make Trading 70x Cheaper

BlackRock's iShares Ethereum Trust ETF (ETHA) will undergo a rare reverse split on October 6. This move aims to boost trading efficiency without affecting investors' positions.

The one-for-three reverse split will combine three ETHA shares into one, raising the share price from around $14.15 per share to an estimated $42.45 per share.

This change could significantly reduce trading costs for ETF holders, according to Eric Balchunas, Bloomberg Intelligence ETF analyst. The projected bid-ask spread after the split would be around 2 basis points, compared to 7 basis points before the split.

Balchunas noted that this reduction in trading costs makes ETHA substantially cheaper to trade than many retail cryptocurrency platforms, which can charge spreads of around 140-150 basis points for execution costs alone.