Grayscale Investments, sponsor of Grayscale Ethereum Trust (OTCQX: ETHE), has announced that it has declared a 9-for-1 split of the Trust’s common units. Shareholders of record as of December 14, 2020, will receive 8 additional shares of the Trust for each share held. The split will be effected on December 17, 2020. Following the split, the Trust’s shares will continue to be quoted on the OTCQX under the symbol “ETHE.”
According to Grayscale, based on the Trust having 29,502,100 Shares issued and outstanding and each Share representing ownership of 0.09284789 of one Ethereum token as of the date of this release, immediately after the effectiveness of the split on December 17, 2020, the Trust would have 265,518,900 shares issued and outstanding and each share would represent ownership of 0.01031643 of one Ethereum token.
Share splits do not have any material impact on the value of the asset but may make the shares more interesting to a broader audience of investors. As of today, ETHE is trading around $108/share with a market cap of around $3.13 billion.