BlackRock's Reverse Split Cuts ETHA Trading Costs by Nearly Threefold

BlackRock announced a reverse split on ETHA in October, which lifted the share price from $14 to $42. This move significantly reduced the bid-ask spread from around 7bps to 2bps.

The adjustment is seen as an attempt by ETF issuers to minimize trading friction and improve liquidity metrics without altering underlying exposure. Market participants are comparing this reduction in trading costs against broader digital-asset venues, which often post costs of 140bps.

This change feeds into ongoing discussions about the efficiency of execution between crypto exchanges and ETFs. The widening gap in execution efficiency is a key point of contention in these debates.