BlackRock's iShares Ethereum Trust (ETHA) will undergo a 1-for-3 reverse share split in October, the fund disclosed in a regulatory filing Friday. The move consolidates every three existing shares into a single share, mechanically tripling the per-share net asset value while leaving total fund assets and each investor's proportional ownership unchanged.
The split takes effect after market close on October 7. Adjusted trading begins October 8 on Nasdaq under the same ticker. ETHA closed Thursday at $24.87 with $3.2 billion in net assets, making it the second-largest spot ether ETF by assets under management behind Grayscale's Ethereum Trust (ETHE). Since its July 23 launch, the fund has absorbed $1.8 billion in net inflows, according to Nasdaq data.
Reverse splits are routine for exchange-traded products trading at low per-share prices. ETHA's NAV has hovered in the mid-$20s since launch, a level some market makers argue discourages retail participation and compresses bid-ask spreads. A higher per-share price can improve liquidity profiles and make the fund more accessible to advisory platforms with minimum price thresholds.
What triggered the move
The filing cites "administrative purposes" and a desire to "maintain a per-share price that facilitates trading." ETHA's launch price was set at $25 per share, benchmarked to ether's spot price at inception. With ether down 2.1% over the past week to $1,865.94, the fund's NAV has drifted below its initial reference point. The 1-for-3 ratio brings the post-split price near $75, squarely in the range where institutional desks prefer to operate.
| Metric | Pre-Split | Post-Split (Est.) |
|---|---|---|
| Shares Outstanding | ~128.7M | ~42.9M |
| NAV per Share | $24.87 | ~$74.61 |
| Total Net Assets | $3.2B | $3.2B |
| Ether Price (Spot) | $1,865.94 | $1,865.94 |
The arithmetic is neutral for shareholders. An investor holding 300 shares worth $7,461 pre-split holds 100 shares worth $7,461 post-split. Tax lots reset, but cost basis per share adjusts proportionally. No taxable event occurs.
How desks are positioning
Authorized participants — the market makers who create and redeem ETF shares — have been briefed on the timeline. Creation and redemption baskets will be recalibrated to reflect the new share count. The fund's custodian, Coinbase Custody Trust Company, holds the underlying ether; the split does not trigger any on-chain movement.
Trading desks at Jane Street and Virtu have flagged the event in their October calendars. "It's a non-event for flows but a cleanup for optics," said one ETF arbitrageur who asked not to be named. "The real signal is that BlackRock wants ETHA trading at a level that looks like a traditional equity ETF, not a penny stock.
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Ether's spot price has been range-bound between $1,860 and $1,910 over the past week. Volume averaged $6.9 billion daily, per CoinGecko. The 7-day decline of 2.1% reflects broader risk-off pressure rather than ETF-specific flows.
Why the timing matters
The October 7 effective date avoids quarter-end rebalancing windows and sits clear of the next SEC review cycle for spot ether ETF amendments. BlackRock filed the initial prospectus supplement on September 19; the split requires no further regulatory approval.
Investors should watch two dates: the ex-date (October 8) when the split-adjusted price becomes the official quote, and the first creation/redemption window post-split (October 9) where authorized participants test the new basket mechanics. Any widening of spreads or dislocation in the creation/redemption process would signal operational friction.
The reverse split also sets a precedent. Fidelity's Ethereum Fund (FETH) trades at a similar per-share level. If ETHA's post-split liquidity improves measurably — tighter spreads, higher quote volume — peers may follow suit before year-end.