Grayscale Investments® Announces Intention to Effect Reverse Share Splits for Grayscale® Bitcoin Mini Trust ETF (Ticker: BTC) and Grayscale® Ethereum Mini Trust ETF (Ticker: ETH)
November 08 2024 - 4:15PM
Grayscale Investments® (“Grayscale”), an asset management firm with
over a decade of expertise in crypto investing, offering more than
25 crypto investment products, today announced its intention to
effect reverse share splits of two of its exchange-traded products
(“ETPs”), Grayscale® Bitcoin Mini Trust ETF (NYSE Arca: BTC) and
Grayscale® Ethereum Mini Trust ETF (NYSE Arca: ETH), with details
as follows:
ETP Name |
Old CUSIP |
New CUSIP |
Split Ratio |
Grayscale® Bitcoin Mini Trust ETF (NYSE Arca: BTC) |
389930 108 |
389930 207 |
1:5 |
Grayscale® Ethereum Mini Trust ETF (NYSE Arca: ETH) |
38964R 104 |
38964R 203 |
1:10 |
Grayscale Bitcoin Mini Trust ETF and Grayscale Ethereum Mini
Trust ETF (collectively the “Funds”) are not registered under the
Investment Company Act of 1940 (the “1940 Act”) and therefore are
not subject to the same regulations and protections as 1940 Act
registered ETFs and mutual funds.
Effective as of 5:00 pm Eastern Time on November 19, 2024,
Grayscale will effect a reverse share split for each of BTC and ETH
at the above ratios. Following the reverse share splits, on
November 20, 2024, the shares of each Fund will continue to trade
on NYSE Arca, Inc. (“NYSE Arca”) under the symbols “BTC” and “ETH”
respectively. The reverse share splits are expected to increase the
price per share of BTC to five times the net asset value of a
share, and of ETH to ten times the net asset value of a share,
prior to the reverse share splits, with proportionate decreases in
the number of shares outstanding (excluding fractional shares). For
example, every five pre-split shares of BTC will result in the
receipt of one post-split share of BTC, which will be five times
higher than the net asset value (“NAV”) per share of a pre-split
share.
Illustration of Reverse Split
The following table shows the effect of a hypothetical 1:5
reverse split:
Period |
Number of Shares Owned |
Hypothetical NAV per Share |
Value of Shares |
Pre-Split |
500 |
$2 |
$1,000 |
Post-Split |
100 |
$10 |
$1,000 |
The following table shows the effect of a hypothetical 1:10
reverse split:
Period |
Number of Shares Owned |
Hypothetical NAV per Share |
Value of Shares |
Pre-Split |
1,000 |
$1 |
$1,000 |
Post-Split |
100 |
$10 |
$1,000 |
Fractional Shares
As a result of the reverse share splits, a shareholder of the
Funds’ shares could hold fractional shares. Any fractional shares
that would be created as a result of the reverse share splits may
either, at the discretion of such shareholder’s DTC participant,
(i) be tracked by such DTC participant on its internal ledgers or
(ii) be aggregated and sold after determination of the number of
fractional shares that would be created as a result of the reverse
share split, and shareholders will receive the net cash proceeds of
such sale in proportion to the fractional shares sold that would
otherwise be held by such shareholder as a result of such reverse
share split. Fractional shares cannot trade on NYSE Arca.
About Grayscale Investments®
Grayscale enables investors to access the digital economy
through a family of future-forward investment products. Founded in
2013, Grayscale has a proven track record and deep expertise as the
world’s largest crypto asset manager. Investors, advisors, and
allocators turn to Grayscale for single asset, diversified, and
thematic exposure.
Important Disclosures
Please read the Funds’
prospectuses carefully before investing in
the Funds. Foreside Fund Services, LLC is the Marketing
Agent for the Funds.
Investing involves risk, including possible loss of principal.
Investments in the Funds are subject to a high degree of risk and
heightened volatility. Digital assets are not suitable for an
investor that cannot afford the loss of the entire investment. An
investment in the Funds is not a direct investment in Bitcoin or
Ether. The Funds are subject to significant risk and heightened
volatility. The Funds are not suitable for all investors and an
investor may lose all their money.
Media Contact Jennifer Rosenthal
press@grayscale.com
Client Contact 866-775-0313
info@grayscale.com
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