Grayscale Ethereum Trust to split shares 9-to-1 in bid to attract retail investors

Digital asset manager Grayscale has announced a share split for its Ethereum Trust, a move that could make the fund more attractive to individual investors.

Grayscale announced in an official press release on Wednesday that the stock split will be implemented on December 17, and Ethereum Trust holders will receive 8 more shares on top of their current holdings. To qualify, investors need to invest in the Ethereum Trust before December 14.

Grayscale said that the Ethereum Trust currently has 29,502,100 shares, each worth 0.09284789 ETH. After the split, the trust will have 265,518,900 shares, each worth 0.01031643 ETH.

According to this press release:

“Between the date this press release is issued and the date the share split is implemented, the trust may create new shares.”

One of the main purposes of announcing a stock split is to make the fund more attractive to individual investors who might be turned off by overpricing in the market. The split does not affect the fund's future earnings or even its current value, meaning its impact is purely psychological.

Grayscale funds received record inflows, reflecting a surge in investor demand for digital assets. Total investment in Grayscale products reached $1.05 billion in the third quarter, with average weekly inflows into the Ethereum Trust reaching $15.6 million. Compared with the average level over the past 12 months, weekly inflows into the Ethereum Trust increased by more than 73%.

Grayscale Bitcoin Trust saw average weekly inflows of $80.5 million this quarter, compared to an average weekly inflow of $39.5 million over the past 12 months.

Excitement around ethereum is growing with the official launch of Eth 2.0 on Tuesday. Phase 0 of the Eth 2.0 development roadmap kicks off a years-long anticipated upgrade.

Grayscale is attracting institutional investment in ETH and BTC during the bull run. On Tuesday, Grayscale announced that it will once again run its anti-gold ad "Drop Gold" to raise awareness of investing in digital assets.