Bloomberg senior ETF analyst Eric Balchunas (@EricBalchunas) disclosed that BlackRock has announced a 1:3 reverse split for its spot Ethereum ETF, $ETHA, expected to be executed in October. The share price will rise from approximately $14 to $42, and the bid-ask spread cost will be reduced from about 7 basis points to approximately 2 basis points. Balchunas also noted that, compared to cryptocurrency exchanges, which typically start at 140 basis points in trading fees, the ETF market demonstrates significantly stronger fee discipline, with a stark disparity between the two.
BlackRock Announces a 1:3 Reverse Stock Split for ETHA to Reduce Trading Costs
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Summary
BlackRock announced a 1:3 reverse stock split for its Ethereum spot ETF, ETHA, effective in October. The split will increase the share price from approximately $14 to $42 and reduce the bid-ask spread from 7 to 2 basis points. With trading volume expected to rise, this move could enhance liquidity and benefit other altcoins to watch. Bloomberg’s Eric Balchunas noted that ETF fee structures remain tighter than those on crypto exchanges, where fees often reach 140 basis points.
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