The move aims to boost the per-share net asset value of the $5 billion fund without altering investor holdings or total assets.
BlackRock will consolidate every three shares of its iShares Ethereum Trust ETF ($ETHA) into one on October 6. The reverse split, filed with the SEC, targets a higher per-share net asset value while preserving the fund’s $5 billion in assets and investor holdings unchanged.
The $ETHA ETF, launched in 2024, has seen its share price decline 40% this year to $14.39 as of August 6. Ethereum ($ETH) trades at $1,908, with the fund experiencing recent outflows amid stagnant price action. BlackRock’s ETHA remains the largest Ethereum ETF by assets under management.
Reverse splits are often criticized for artificially inflating share prices without improving fundamentals, though they can enhance marketability for some investors.