Grayscale Completes Reverse Share Splits for Bitcoin and Ethereum ETFs, Driving Major Price Increases

Grayscale Investments, a global leader in cryptocurrency exchange-traded funds (ETFs), has completed reverse share splits for its Bitcoin and Ethereum Mini Trust ETFs. This move is set to enhance trading efficiency and significantly boost share prices, aligning with the firm’s commitment to delivering value to its investors.
The reverse share splits, finalized on Nov. 19, resulted in a fivefold price increase for the Grayscale Bitcoin Mini Trust ETF (BTC) and a tenfold price increase for the Grayscale Ethereum Mini Trust ETF (ETH). The changes are part of Grayscale’s strategy to improve the cost-effectiveness of its products while accommodating the needs of the investment community.
What Are Reverse Share Splits?
A reverse share split consolidates the number of shares an investor holds into fewer units while proportionally increasing the price per share. This adjustment does not alter the overall value of a shareholder’s investment but aims to make the trading of securities more cost-effective and manageable.
In this case, Grayscale's reverse share splits mean investors holding pre-split shares will see their holdings adjusted proportionally to reflect fewer shares, but at significantly higher per-share prices.
Grayscale emphasized the benefits of this move in a statement:
“We are constantly evolving our product suite to meet the wants and needs of the investment community. Based on client feedback, we believe this decision is both right and beneficial to investors.”
Impact on Grayscale Bitcoin Mini Trust ETF
For the Grayscale Bitcoin Mini Trust ETF, the reverse split was conducted at a 5:1 ratio. This means that for every five pre-split shares, investors received one post-split share priced at five times the previous value.
As a result, the ETF’s price per share increased by fivefold. At the time of writing, the ETF is trading at $41 in pre-market, up from $8.20 per share before the split, according to TradingView.
This adjustment is expected to make the ETF more appealing to institutional and retail investors seeking streamlined investment options in the cryptocurrency market.
Additionally, fractional shares resulting from the split will be aggregated and sold, with the proceeds distributed to shareholders proportionate to their holdings. Grayscale noted that fractional shares cannot be traded on the NYSE Arca exchange but will be managed through internal systems like the Depository Trust Company (DTC).
Impact on Grayscale Ethereum Mini Trust ETF
For the Grayscale Ethereum Mini Trust ETF, the reverse split was conducted at a 10:1 ratio. Investors received one post-split share for every ten pre-split shares, with the price of each post-split share increasing tenfold.
Following the split, the ETF’s share price surged to $2.90 in pre-market trading, compared to its previous trading price of $0.29 per share.
This move highlights Grayscale’s confidence in Ethereum’s value proposition and its commitment to long-term growth in the crypto space.
Shareholders of the Ethereum Mini Trust ETF will observe a proportionate decrease in their number of shares, with the adjusted value reflected in trading from Nov. 20 onward.
No Action Required for Shareholders
Grayscale clarified that investors do not need to take any action as the reverse share splits were automatically implemented. Shareholders’ holdings remain unchanged in total value despite the changes in share quantity and price.
“Importantly, your holdings will remain unchanged,” Grayscale assured its investors, emphasizing that the process was seamless and required no intervention from shareholders.
Broader Implications for the Crypto ETF Market
Grayscale’s reverse share splits come amid growing momentum in the cryptocurrency market, fueled by institutional interest and increasing adoption of Bitcoin and Ethereum.
The move is seen as part of a broader effort to enhance the accessibility and efficiency of crypto ETFs. It also aligns with the record-breaking inflows into spot Bitcoin ETFs, which have seen over $1.7 billion in net inflows over the past six weeks, marking a strong resurgence of interest in cryptocurrency investment.
Market analysts believe the restructuring of Grayscale’s ETFs could attract new investor segments and support the ongoing rally in Bitcoin and Ethereum prices. By simplifying and streamlining its offerings, Grayscale continues to solidify its position as a leader in the crypto ETF space.
A Step Toward Mainstream Adoption
Grayscale’s latest move highlights the maturation of cryptocurrency ETFs as investment vehicles. With prices surging and investor confidence growing, the company’s strategic decisions could pave the way for increased institutional participation and further integration of digital assets into traditional financial systems.
As the cryptocurrency market evolves, Grayscale remains at the forefront, driving innovation and making digital asset investments more accessible to investors worldwide.
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