BlackRock filed with the SEC to execute a 1-for-3 reverse split of its ETHA Ethereum ETF on Oct. 6, which analysts say will cut the fund's bid-ask spread from ~7bps to 2bps.
Crypto ETF News
BlackRock has filed notice with the US Securities and Exchange Commission disclosing a one-for-three reverse share split for its iShares Ethereum (ETH) Trust ETF, trading under the ticker ETHA. The split is scheduled to take effect on Oct. 6.
Every three ETHA shares will be consolidated into one following the split. The fund's per-share net asset value will rise proportionally, but the total value of any investor's position and the fund's overall assets will remain unchanged.
Lower Spread Is the Practical Effect
BlackRock did not state a reason for the split in its SEC filing. Bloomberg Senior ETF Analyst Eric Balchunas offered an interpretation on social media, noting that consolidating shares at a higher price should reduce the proportional bid-ask spread investors pay when trading. "This will lower cost to trade from 7bps to 2bps-ish," Balchunas wrote, adding that the willingness of ETF issuers to treat a seven-basis-point spread as a problem worth fixing reflects well on how the industry approaches cost efficiency.
ETHA was trading at roughly $14 per share in early August 2026, down about 40% year-to-date, broadly in line with ETH's own price decline over the same period. A higher per-share price after the reverse split will make each basis point of spread a smaller fraction of the trade value, which is the mechanism behind the lower cost Balchunas described.
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ETHA's Position in the Ethereum ETF Market
ETHA held more than $5 billion in assets under management as of early August, making it the largest ETH-based exchange-traded fund currently trading. Grayscale's Ethereum fund holds the second-largest position in the category.
BlackRock launched ETHA as a non-staking fund in 2024. The firm later added a separate product, the iShares Staked Ethereum Trust ETF, which began trading in March 2026 and allows investors to earn staking rewards. The October reverse split applies only to ETHA and does not affect the staking fund.
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