BlackRock Plans 1-for-3 Reverse Split for ETHA, Aiming to Cut Trading Friction
AI Market Summary
BlackRock's planned 1-for-3 reverse split of ETHA (October; price mechanically lifts from ~$14 to ~$42) targets tighter trading by reducing the ETF's bid-ask spread from ~7 bps to ~2 bps. While the split does not change NAV, lower friction can improve execution quality and attractiveness for institutional flows, marginally supporting liquidity conditions for ETH-linked exposures.
Impact level
● Medium
Affected assets
NCSKETHA2USD/USDT+0.14%
AI Insight · NCSKETHA2USD/USDTAI Insight
● Neutral
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BlackRock will carry out a 1-for-3 reverse stock split for its ETHA ETF in October, a step intended to tighten trading spreads and lower transaction costs. Bloomberg ETF analyst Eric Balchunas wrote on X that the split would lift ETHA's share price to about $42 from roughly $14.
According to the post, BlackRock views the current bid-ask spread of around 7 basis points as too wide and expects it to fall to about 2 basis points after the change. By comparison, cryptocurrency exchanges typically charge fees of roughly 140 basis points. The update was reported by ME News on August 5 (UTC+8). (Source: ODAILY)
