Ethereum

Bitcoin ETF

Bitcoin

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Grayscale Investments has completed reverse share splits for its Bitcoin and Ethereum ETFs.</li>
 <li>The firm’s Bitcoin ETF options will begin trading from 21st November.</li>
</ul>
<p>Grayscale Investments, a prominent digital asset manager, has carried out reverse share splits for its <a href="https://coineagle.com/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> Mini Trust ETF and <a href="https://coineagle.com/price/ethereum/" rel="noopener noreferrer nofollow">Ethereum</a> Mini Trust ETF.</p>
<p>These changes were implemented on the 20th of November, following the execution of the reverse share splits the previous night.</p>
<h2 id="what-is-a-reverse-share-split">What is a Reverse Share Split?</h2>
<p>A reverse share split is a process where multiple shares are combined into one, which reduces the total number of shares but increases the share price.</p>
<p>David LaValle, Grayscale’s Global Head of ETFs, expressed his belief that this decision was beneficial for both their clients and the investment community in a recent blog post.</p>
<h2 id="implications-of-the-reverse-share-split">Implications of the Reverse Share Split</h2>
<p>Grayscale highlighted the benefits of reverse share splits, including their ability to streamline trading and make it more cost-effective for market participants.</p>
<p>Following this move, Grayscale’s Ethereum Mini Trust ETF underwent a 1:10 reverse share split, which increased the price per share to 10 times its pre-split net asset value (NAV), while reducing the number of shares proportionately.</p>
<p>In a similar manner, Grayscale’s Bitcoin Mini Trust ETF executed a 1:5 reverse split, raising the price per share to five times its pre-split NAV, with a corresponding decrease in shares outstanding.</p>
<p>However, Grayscale noted that shareholders might end up holding fractional shares after the split.</p>
<p>These fractional shares, based on the policies of their Depository Trust Company (DTC) participant, can either be tracked internally or aggregated and sold, with shareholders receiving cash proceeds.</p>
<p>It’s important to note that fractional shares are not eligible for trading on the NYSE Arca.</p>
<h2 id="performance-of-grayscale-s-bitcoin-and-ethereum-etfs">Performance of Grayscale’s Bitcoin and Ethereum ETFs</h2>
<p>Post-split, the firm’s ETFs for Bitcoin and Ethereum showed mixed performance, according to Yahoo Finance.</p>
<p>The Bitcoin Mini Trust ETF closed at $41.84, marking a 1.80% increase during regular trading hours.</p>
<p>Conversely, the Ethereum Mini Trust ended at $28.93, representing a depreciation of 0.92%. However, it saw a pre-market rise to $29.58, gaining 2.25%.</p>
<h2 id="launch-of-btc-etf-options">Launch of BTC ETF Options</h2>
<p>This reverse share split comes just before a significant development for the firm.</p>
<p>Grayscale is poised to launch the Bitcoin ETF options for its Grayscale Bitcoin Trust (GBTC) the Mini Trust on the 21st of November, marking a significant expansion in the U.S. market.</p>
<p>This development follows the debut of BlackRock’s IBIT options, which saw nearly $1.9 billion in trading volume on its opening day.</p>

Grayscale Concludes Reverse Share Splits: A New Era for Bitcoin, Ethereum ETFs

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CoinEagle.com

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