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    Grayscale conducts reverse split on Bitcoin and Ethereum mini trust ETFs to enhance affordability

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    Grayscale Investments has implemented a reverse share split on its Bitcoin and Ethereum mini trust ETFs (BTC and ETH), aiming to make trading more affordable. Post-split, BTC’s price per share rose five-fold, and investors can now hold fractional shares. Profits from these shares are returned to shareholders. ETH saw a tenfold increase in price per share, though fractional shares aren’t included. Following the November 19 split, shareholders saw results the next trading day. The split happens automatically and doesn’t affect current holdings. Currently, pre-market prices sit at $41 for BTC and $2.9 for ETH.

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    Grayscale Investments, a major player in the Bitcoin ETF game, is shaking things up to help pinch pennies on their crypto ETFs by doing something called a reverse share split.

    On November 19th, Grayscale had finalised the reverse split of their two crypto ETFs, specifically Grayscale Bitcoin Mini Trust ETF (we’ll call it BTC for short) and Grayscale Ethereum Mini Trust ETF (or ETH).

    Grayscale shared that they did this reverse split to make trading these digital shares more wallet-friendly. They’re always looking to evolve and based on what their clients have been telling them, they believe it’s a move in the right direction.

    Once Grayscale had finished the reverse split on November 19th, the BTC had seen its price rise five-fold per share. But don’t worry guys, the number of shares in circulation adjusted accordingly.

    Thanks to these splits, investors now have the chance to hold onto fractional shares, which the trust company can record or band together and then flog off, once the number of projected fractional shares from the split is confirmed.

    Grayscale pointed out, “When it comes to the cash from those banded-together shares that’ve been sold off, shareholders get the profit in proportion to the fractional shares sold that would otherwise be held by such shareholders from that reverse share split. But, fractional shares can’t be traded on NYSE Arca.”

    For the ETH as well, the reverse split done by Grayscale bumped the price per share by a whopping ten times over. The number of shares out for grabs also had a similar adjustment, but fractional shares aren’t part of the deal.

    On November 20th, the day after the reverse split was done on November 19th, shareholders saw the effect with the very next day of trading.

    For BTC, for every five shares from before the split, holders will get one share after the split, which will be worth five times over the original value of a pre-split share. Currently, the BTC is going for $41 in the pre-market, according to TradingView.

    Similar to BTC, for ETH, every ten shares before the split will end up as one share after the split. This post-split share will be worth ten times more than a pre-split share. Right now, at time of writing, ETH is going for $2.9 in the pre-market, based on TradingView’s numbers.

    Good news, shareholders don’t need to lift a finger, as the split will happen automatically. Plus, Grayscale assured that your current holdings won’t budge.

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