Grayscale Investments has completed a 1:5 reverse share split for its Bitcoin Mini Trust ETF and Ethereum Mini Trust ETF, effective November 19, 2024.

As a result of this split, the Bitcoin Mini Trust ETF is now trading at approximately $41 per share, while the Ethereum Mini Trust ETF has risen to $2.90 per share in pre-market trading.

These adjustments reflect Grayscale's strategy to enhance accessibility for investors and adapt to evolving market conditions.

Grayscale stated that the changes were made in response to client feedback aimed at improving the trading experience and overall appeal of the funds.

Investors do not need to take any action for the reverse share split, as it occurs automatically and their total value remains unchanged despite the reduction in the number of shares.

While the number of shares held by investors decreases, the overall value of their holdings remains the same after the split.

The reverse splits may result in fractional shares, which cannot be traded on NYSE Arca; these will be tracked internally, and shareholders will receive cash proceeds based on their holdings.

This move comes amid increased interest in the cryptocurrency market, with Bitcoin ETFs seeing significant inflows, indicating a growing attraction to digital assets.

The volatility of cryptocurrencies, alongside these strategic changes, raises questions about their potential impact on investor sentiment towards Ethereum in the near future.

Grayscale emphasizes that the Funds are not registered under the Investment Company Act of 1940, which means they are not subject to the same regulations as traditional ETFs and mutual funds.

Concerns have been raised regarding the potential risks of manipulating ETF structures, which could undermine confidence in Ethereum itself.

In a light-hearted remark, Grayscale suggested that the price increase aims to better meet investor expectations.