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BlackRock’s iShares Ethereum Trust ETF will undergo a 1‑for‑3 reverse split on Oct. 6, targeting a tighter bid‑ask spread and lower trading fees while keeping
BlackRock announced a one‑for‑three reverse split of its iShares Ethereum Trust ETF (ETHA) effective Oct. 6, with the record date on Oct. 5, aiming to narrow the fund’s bid‑ask spread and reduce trading costs from roughly 7 bps to about 2 bps [2].
| At a glance | |
|---|---|
| Split ratio | 1 new share for every 3 existing shares |
| Effective date | Oct. 6 (record date Oct. 5) |
| Current price | ~ $14 per share |
| YTD performance | Down ~ 40 % |
The reverse split will not alter ETHA’s investment policy, Ethereum holdings, or total assets under management, which sit above $5 billion, making it the largest spot Ethereum ETF [2]. By consolidating shares, the NAV per share will rise proportionally, preserving each investor’s total value while eliminating fractional shares, which will be redeemed for cash and could trigger tax events [2]. Bloomberg senior ETF analyst Eric Balchunas noted that a higher share price typically tightens the bid‑ask spread, cutting trading fees from about 7 bps to roughly 2 bps, a material saving for active traders [2].
ETHA launched on July 23, 2024 and has underperformed its Bitcoin counterpart IBIT, falling roughly 48 % from its launch price versus IBIT’s 35 % gain [1]. Despite the price decline, ETHA’s beta to Ethereum remains high, delivering a 10.7 % weekly gain after Ether’s 15 % seven‑day rally [1]. Competing products include VanEck’s Ethereum ETF (ETHV), which carries a slightly lower expense ratio (0.20 % vs. ETHA’s 0.25 %) but offers comparable liquidity [3]. The reverse split aligns ETHA with industry practice; Grayscale performed similar splits for its Bitcoin and Ethereum mini‑trusts in November 2024, boosting per‑share NAV several‑fold [2].
ETHA tracks the spot price of Ether and does not stake the underlying asset, meaning investors miss the low‑single‑digit staking yield that Ether can generate on‑chain [1]. This structural gap has been highlighted as a drawback versus direct Ether ownership, though BlackRock’s newer iShares Staked Ethereum Trust ETF, launched in March 2026, provides a staking‑enabled alternative [2].
The reverse split underscores BlackRock’s effort to improve ETHA’s trading efficiency amid a challenging market for Ethereum ETFs, while leaving the fundamental exposure to Ether unchanged. Future investor sentiment may hinge on whether tighter spreads and the availability of a staking‑enabled alternative can narrow the performance gap with Bitcoin‑focused ETFs.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Aug 6, 2026 · How we report
It is an Ethereum network upgrade designed to increase the block gas limit, lower transaction fees, and improve overall network capacity.
Yes, Charles Schwab began rolling out direct Ethereum trading to select retail clients in May 2026, charging a 0.75% fee per trade.
As of late August 2026, Ethereum trades around $2,460, which is approximately 50% below its August 2025 all-time high of $4,953.