BlackRock’s rare ETHA reverse split is about to make trading Ethereum 70 times cheaper than Coinbase

BlackRock is preparing a one-for-three reverse split of its iShares Ethereum Trust ETF (ETHA), a structural change that will lift ETHA’s share price and could reduce its effective trading spread without changing the value of investors’ holdings.ETHA’s sponsor approved the reverse split on July 31, according to an SEC regulatory filing. Every three shares held on the Oct. 5 record date will be combined into one when split-adjusted trading begins on Nasdaq on Oct. 6.Why is BlackRock doing this?Reverse splits often carry a negative signal in equity markets because struggling companies use them to lift depressed share prices and avoid delisting. A 2025 Reuters report revealed that around 80% of the companies that executed reverse splits had a market value below $250 million.While BlackRock offered no explanation for ETHA’s reverse split, the fund’s prospectus gives its sponsor authority to take such action when it believes the secondary-market price has moved outside a desirable trading range.In view of this, one reason the asset manager might be taking this action is to raise the nominal value of the shares.This year, ETHA’s share price has fallen by more than 37% to roughly $14.15, m...