Crypto, far from being an isolated revolution, acts as a catalyst: it pushes its followers to invent ever more daring mechanisms to seduce the markets. It is with this in mind that Grayscale, a major player in exchange-traded funds (ETFs), has orchestrated a mathematical sleight of hand on its flagship Bitcoin and Ethereum products. Let's find out how the ETH ETF saw its value increase tenfold thanks to a clever reverse split.
Grayscale hits hard with a 10x increase in its Ethereum ETF
On November 19, Grayscale, already surpassed by BlackRock, struck hard: the Ethereum Mini Trust ETF (ETH) suffered a reverse split at the rate of 10 pre-split shares for a post-split. Result ? A dizzying increase in the unit value of the ETF, which was multiplied by 10.
The price per share is increased to $2.90 in pre-marketa real spotlight on this fund.
However, this rise is not a magical enrichment. Investors see their shares reduced in a proportion identical to the increase in valuethus balancing the situation. Grayscale assures that “ wallets remain unchanged “.
But the operation has a clear objective: make the ETH ETF more accessible and attractive for investors.
Some key figures:
- 10 pre-split actions = 1 post-split action;
- 10x increase in the par value of the stock;
- Fractionality of shares adjusted automatically without shareholder intervention.
The shadow of Grayscale: what future for crypto?
With this maneuver, Grayscale wishes attract a community of investors looking for stability and practicality. But this innovation could well turn into a sword of Damocles for Ethereum. Some analysts point out the risks linked to excessive manipulation of these funds, which could erode confidence in the crypto ETH itself.
L'Grayscale Mini Trust Bitcoin ETF also saw a similar adjustment, with a 5x increase per share. However, it is the ETH ETF that is attracting attention. A note of humor from Grayscale during the announcement:
“ If everything seems more expensive, it’s to better meet your expectations! “.
The volatility of bitcoin and cryptos, coupled with these strategic adjustments, raises the question: how will these movements influence investors? The next few weeks will be decisive in gauging the impact on Ethereum and its ecosystem.
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