BlackRock Builds Two-ETF Strategy for Ethereum Recovery

TLDR

• BlackRock will complete a one-for-three ETHA reverse share split on October 6.
• Every three ETHA shares will become one without changing investors’ total holding value.
• Fractional shares will be redeemed and paid in cash through brokerage accounts.
• The adjustment could reduce ETHA’s trading spread and lower transaction costs.
• ETHA remains the largest spot Ethereum ETF, with over $5 billion in assets.

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BlackRock is adjusting its Ethereum fund lineup ahead of a possible recovery. The BlackRock Ethereum ETF strategy now includes a reverse share split for ETHA and a separate staked Ether fund for staking exposure.

The company plans to complete a one-for-three reverse split for the iShares Ethereum Trust ETF on October 6. The move will raise ETHA’s share price while leaving the total value of investors’ holdings unchanged.

BlackRock Ethereum ETF Gets Share Adjustment

Under the plan, every three ETHA shares held on the October 5 record date will become one share. The fund’s total assets will not change, and the split will not alter its Ether holdings.

BlackRock will not issue fractional shares. Any remaining fraction will be redeemed and paid in cash through brokerage accounts. The SEC filing notes that such payments may create tax consequences for shareholders.

The filing did not state why BlackRock approved the split. Bloomberg ETF analyst Eric Balchunas said the higher share price could narrow the fund’s trading spread and reduce costs.

Source: X

ETHA Remains BlackRock’s Main Ether Fund

ETHA was trading near $14 this week after falling about 40% in 2026. The decline has followed weaker Ether prices and softer demand for spot Ethereum products.

Despite the fall, ETHA remains the largest spot Ether ETF by assets, with more than $5 billion under management. Grayscale’s Ethereum funds remain the next largest products in the market.

BlackRock launched ETHA in 2024 as a non-staking fund. It gives investors direct Ether price exposure through a regulated exchange-traded product without staking rewards.

Staked Fund Expands BlackRock’s Reach

BlackRock also launched the iShares Staked Ethereum Trust ETF in March 2026. That product gives the asset manager another route to attract investors if interest in Ether returns.

The two funds serve different parts of the market. ETHA offers simple price exposure, while the staked fund targets investors who want access to staking income through an ETF structure.

The October reverse split changes how ETHA trades rather than what it owns. By keeping both a standard Ether ETF and a staked option, BlackRock can serve investors with different goals during an Ethereum recovery.

This two-ETF setup gives BlackRock a wider position in the Ethereum market. The company can capture demand from investors seeking basic exposure and from those focused on staking returns.