Hassan Maishera
TL;DR
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BlackRock will conduct a one-for-three reverse share split for its Ethereum Trust ETF on October 6.
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Every three ETHA shares will be consolidated into one share.
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The split will increase ETHA’s per-share price but will not change the total value of investors’ holdings or the fund’s assets.
BlackRock plans to implement a one-for-three reverse share split for its iShares Ethereum Trust ETF (ETHA) on October 6, according to a filing with the US Securities and Exchange Commission.
Under the planned adjustment, every three ETHA shares held by an investor will be consolidated into one share. The reverse split will increase the fund’s net asset value per share without changing the overall value of investors’ positions or the assets held by the fund.
How ETHA’s Reverse Share Split Will Work
A reverse share split reduces the number of outstanding shares while proportionally increasing the price of each remaining share.
For example, an investor holding 300 ETHA shares before the split would own 100 shares afterward. Although the number of shares would decline, the investor’s total exposure to the fund would remain unchanged, excluding normal market movements.
Similarly, the reverse split will not affect the total value of Ethereum-related assets managed by the fund.
Reverse Split Could Reduce ETHA Trading Costs
BlackRock did not provide a detailed explanation for the decision. However, raising ETHA’s per-share price could improve trading efficiency by narrowing the fund’s bid-ask spread as a percentage of its value.
Bloomberg senior ETF analyst Eric Balchunas said the adjustment could reduce ETHA’s trading cost from approximately seven basis points to around two basis points.
“Gotta love how ETF issuers consider a 7bp spread a PROBLEM and is adjusting to cut it to 2bps,” Balchunas wrote on social media.
A narrower spread would reduce the difference between the highest price buyers are willing to pay, and the lowest price sellers are prepared to accept. This could make entering and exiting ETHA positions less expensive for investors.
ETHA has declined by approximately 40% since the beginning of the year, broadly tracking weakness in Ethereum’s market price. The ETF was trading near $14 on Tuesday.
The planned reverse split would lift ETHA’s nominal share price to roughly three times its pre-split level, assuming no change in the underlying value of its assets before the adjustment takes effect.
However, the split itself will not create additional value or alter the fund’s investment performance.
BlackRock Leads the Ethereum ETF Market
BlackRock launched ETHA as a non-staking spot Ethereum fund in 2024. The ETF has since become the largest Ethereum-based exchange-traded fund, with more than $5 billion in assets under management.
Grayscale’s Ethereum fund ranks as the market’s second-largest ETH investment product.
BlackRock expanded its Ethereum ETF offerings in March 2026 with the launch of the iShares Staked Ethereum Trust ETF. Unlike ETHA, the newer product provides investors with Ethereum exposure alongside staking-related returns.
