Grayscale completed the "share split" of the Ethereum Trust Fund

[Cordillerabit]

"The cryptocurrency fund Grayscale completed the share split of the Ethereum Trust Fund earlier, from 29.5 million shares to 285 million shares, and the number of issuance increased nine times. After the split, the price of ETHE also rose further , ETHE's stock market price rose 10.95% in a single day. However, the current price premium of ETHE in the secondary market is as high as nearly three times.

 

According toGrayscale's official website, the shares of the Ethereum Trust Fund (ETHE) have been issued and split. The original issuance was 29,502,100 shares. Each ETHE represents a denomination of 0.09 ETH. After the completion of the issuance, the issuance volume has increased nine times to 285,269,400. Each ETHE represents a denomination of 0.01 ETH.

Share split refers to the splitting of each share into smaller denominations under the condition that the company's "original capital" remains unchanged, in order to increase the total number of issued shares.

Usually the reason for choosing to split shares is that the company’s stock market is bullish and its market price is expected to exceed the current market value, so the shares will be split into smaller denominations under the premise of the same total value to increase market Liquidity and transaction volume, thereby attracting more investors.

After the split, the shareholders’ original share ratio remains unchanged. Although the dividends and bonuses have been technically adjusted, they have no impact on the original shareholders.

Source: Bityard