AllPennyStocks.com BlackRock’s Ethereum ETF To Undergo 1-For-3 Reverse Split
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BlackRock’s Ethereum ETF To Undergo 1-For-3 Reverse Split

BlackRock (NYSE: $BLK) says it plans to implement a one-for-three reverse share split on its iShares Ethereum Trust ETF (NASDAQ: $ETHA) on Oct. 6.

The reverse split was outlined in a filing with the U.S. Securities and Exchange Commission (SEC) and will consolidate every three ETHA shares into one.

The reverse split will be used to increase the per-share net asset value of the ETF without changing the value of investors’ holdings or the fund’s assets, according to BlackRock.

Some analysts and investors criticize reverse stock splits, saying they artificially raise the price of an asset such as a stock or ETF. 

News of the reverse split comes as BlackRock’s leading Ethereum (CRYPTO: $ETH) ETF has seen its price fall 40% this year, changing hands at $14.39 U.S. on Aug. 6.

As with its spot Bitcoin (CRYPTO: $BTC) ETF, BlackRock's Ethereum exchange-traded fund is the largest on the market, with assets under management of more than $5 billion U.S. 

BlackRock launched the ETHA fund in 2024 and it initially attracted a lot of investor capital. However, the fund has seen outflows in recent months as the price of Ethereum stalls. 

Ethereum is trading at $1,908 U.S. in early trading on Aug. 6.

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