Grayscale Finalizes Reverse Share Splits for BTC and ETH Mini Trust ETFs, Prepping for BTC ETF Options Debut

Grayscale Investments, a digital currency asset manager, has finalized reverse share splits for its Bitcoin [BTC] Mini Trust ETF (BTC) and Ethereum

Grayscale Completes Reverse Share Splits for BTC, ETH Mini Trust ETFs

Grayscale, a digital currency asset manager, has finalized reverse share splits for its Bitcoin ( BTC ) Mini Trust ETF and Ethereum ( ETH ) Mini Trust ETF.

The changes went into effect on the 20th of November, following the execution of the reverse share splits the prior evening.

According to a recent blog post by David LaValle, Grayscale's Global Head of ETFs,

“Based on feedback from our clients, we believe this is the right decision and beneficial to our clients and the investment community.”

A reverse share split combines several shares into one, reducing total shares but raising the share price.

Grayscale's recent move was a 1:10 reverse share split for its Grayscale Ethereum Mini Trust ETF.

This increased the price per share to 10 times its pre-split net asset value (NAV) while reducing the number of shares outstanding proportionately.

Grayscale also executed a 1:5 reverse split for its Grayscale Bitcoin Mini Trust ETF, raising the price per share to five times its pre-split NAV with a corresponding decrease in shares outstanding.

However, the asset manager noted that shareholders may end up holding fractional shares post-split.

Depending on their Depository Trust Company (DTC) participant's policies, these fractional shares can either be tracked internally or aggregated and sold, with shareholders receiving cash proceeds.

It is important to note that fractional shares are ineligible for trading on the NYSE Arca.

Following the split, the firm's ETFs for Bitcoin and Ethereum showed mixed performance, according to Yahoo Finance.

The Bitcoin Mini Trust ETF closed at $41.84, showing a 1.80% increase during regular trading hours.

On the other hand, the Ethereum Mini Trust ended at $28.93, showing a 0.92% depreciation.

However, it saw a pre-market rise to $29.58, gaining 2.25%.

The reverse share splits also precede a major development for the firm. Grayscale is set to begin trading BTC ETF options for its Grayscale Bitcoin Trust ( GBTC ) and the Mini Trust on the 21st of November, expanding significantly in the U.S. market.

The asset manager shared its excitement about this milestone in a recent post on X.

This move follows BlackRock's IBIT options debut, which saw nearly $1.9 billion in trading volume on its opening day.