BlackRock to merge every three ETHA shares into one this October
BlackRock has filed with the SEC to execute a 1-for-3 reverse share split on its iShares Ethereum Trust ETF ($ETHA) on October 6, a move analysts say will cut trading costs from around 7 basis points to 2 basis points.
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What BlackRock is doing and why it matters
@BlackRock has filed with the U.S. Securities and Exchange Commission to execute a 1-for-3 reverse share split on its iShares Ethereum Trust ETF ($ETHA), effective October 6. The split will consolidate every three ETHA shares into one, increasing the fund's per-share net asset value without changing the value of investors' holdings or the fund's assets. Fractional shares will not be issued; any fractional remainder will be redeemed and paid out in cash to the shareholder's brokerage account.
BlackRock did not state a reason for the split in its SEC filing. However, the practical effect is clear. Bloomberg Senior ETF Analyst Eric Balchunas stated the move will lower trading costs from 7 basis points to approximately 2 basis points. 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.
Context: A depressed share price and a familiar playbook
$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. Despite that slide, ETHA holds over $5 billion in assets under management, making it the largest Ethereum-based ETF on the market.
The move follows a precedent set in the crypto ETF space. Grayscale completed similar splits on its Bitcoin Mini Trust and Ethereum Mini Trust in November 2024, lifting per-share NAV by 5x and 10x respectively. Grayscale said the reverse share splits for those ETFs were designed to make the trading of securities more cost-effective.
The reverse split applies only to the non-staking ETHA fund and does not affect BlackRock's separate staked Ethereum ETF launched in March 2026. The reverse split will be effectuated after the close of trading on October 5, 2026, with shares beginning to trade on a split-adjusted basis on October 6, 2026.
Sources
BlackRock iShares Ethereum Trust ETF (ETHA) official product page
The Block: BlackRock's spot Ethereum ETF to undergo 1-for-3 reverse share split in October
GlobeNewswire: Grayscale announces completion of reverse share splits for Bitcoin and Ethereum Mini Trust ETFs
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Crypto RichRich has been researching cryptocurrency and blockchain technology for eight years and has served as a senior analyst at BSCN since its founding in 2020. He focuses on fundamental analysis of early-stage crypto projects and tokens and has published in-depth research reports on over 200 emerging protocols. Rich also writes about broader technology and scientific trends and maintains active involvement in the crypto community through X/Twitter Spaces, and leading industry events.