Ethereum

Value

Bitcoin

<p>Crypto, far from being an isolated revolution, acts as a catalyst: it pushes its followers to invent ever bolder mechanisms to attract markets. It is in this spirit that Grayscale, a major player in exchange-traded funds (ETFs), orchestrated a mathematical sleight of hand on its flagship products Bitcoin and Ethereum. Let’s discover how the ETH ETF saw its value multiply through a clever reverse split.</p>
<h2 id="h-grayscale-frappe-fort-avec-une-hausse-de-10x-sur-son-etf-ethereum">Grayscale strikes hard with a 10x increase on its Ethereum ETF</h2>
<p>On November 19, Grayscale, already <a href="https://www.cointribune.com/en/crypto-blackrock-surpasses-grayscale-and-becomes-the-new-king-of-etfs/" target="_blank" rel="noopener noreferrer nofollow">surpassed by BlackRock</a>, struck hard: the Ethereum Mini Trust ETF (ETH) underwent <strong><a href="https://www.grayscale.com/blog/general-updates/btc-eth-reverse-share-splits-are-coming-what-you-need-to-know" target="_blank" rel="noopener noreferrer nofollow">a reverse split</a> of 10 pre-split shares</strong> for one post-split share. The result? A <strong>staggering increase in the unit value of the ETF,</strong> which was multiplied by 10.</p>
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<p>The price per share is <strong>up to $2.90 in pre-market</strong>, a real spotlight on this fund.</p>
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   Illustration of reverse share splits 1:5 and 1:10. Source: Grayscale Investments
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<p>However, this rise is not a magical enrichment. Investors see their shares reduced in <strong>an identical proportion to the increase in value</strong>, thus balancing the situation. Grayscale assures that “<em>portfolios remain unchanged</em>“.</p>
<p>But the operation has a clear goal: <strong>to make the ETH ETF more accessible and attractive</strong> to investors.</p>
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<p>Key figures:</p>
<ul>
 <li><strong>10 pre-split shares = 1 post-split share; </strong></li>
 <li><strong>10x increase for the nominal value of the share; </strong></li>
 <li><strong>Fractionality of shares adjusted automatically without shareholder intervention. </strong></li>
</ul>
<h2 id="h-l-ombre-de-grayscale-quel-avenir-pour-la-crypto">The shadow of Grayscale: what future for crypto?</h2>
<p>With this maneuver, Grayscale aims to <strong>attract a community of investors seeking stability and practicality</strong>. But this innovation could turn into a Damocles sword for Ethereum. Some analysts point to the risks associated with an excessive manipulation of these funds, which could <a href="https://www.cointribune.com/en/crypto-heres-how-grayscales-etf-could-crush-ethereum/" target="_blank" rel="noopener noreferrer nofollow">erode confidence in the ETH crypto itself</a>.</p> 
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  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:ETHUSD","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"dark"}</script>
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  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:ETHUSD","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"light"}</script>
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 <div class="tradingview-widget-copyright"><a href="https://fr.tradingview.com/symbols/ETHUSD/?exchange=BINANCE" rel="noopener noreferrer nofollow" target="_blank"><span class="text-primary-color">ETHUSD chart</span></a> by TradingView
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<p>The <strong><a href="https://www.cointribune.com/quel-est-le-meilleur-etf-bitcoin/" target="_blank" rel="noopener noreferrer nofollow">Grayscale Bitcoin</a> Mini Trust ETF</strong> also saw a similar adjustment, with <strong>a 5x increase per share</strong>. However, it is the ETH ETF that attracts the most attention. A humorous note from Grayscale during the announcement:</p>
<p>” <em>If everything seems more expensive, it’s to better meet your expectations!</em>“.</p>
<p>The <a href="https://www.cointribune.com/en/why-could-bitcoin-experience-increased-volatility-after-the-election/" target="_blank" rel="noopener noreferrer nofollow">volatility of Bitcoin</a> and cryptocurrencies, combined with these strategic adjustments, raises questions: how will these movements influence investors? The coming weeks will be crucial to assess the impact on Ethereum and its ecosystem.</p>
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Grayscale Multiples The Nominal Value Of Its Ethereum And Bitcoin ETFs By Ten

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