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BlackRock (NYSE: $BLK) says it plans to implement a one-for-three reverse share split on its iShares Ethereum Trust ETF (NASDAQ: $ETHA) on Oct. 6.

The reverse split was outlined in a filing with the U.S. Securities and Exchange Commission (SEC) and will consolidate every three ETHA shares into one.

The reverse split will be used to increase the per-share net asset value of the ETF without changing the value of investors' holdings or the fund's assets, according to BlackRock.

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Some analysts and investors criticize reverse stock splits, saying they artificially raise the price of an asset such as a stock or ETF. 

News of the reverse split comes as BlackRock's leading Ethereum (CRYPTO: $ETH) ETF has seen its price fall 40% this year, changing hands at $14.39 U.S. on Aug. 6.

As with its spot Bitcoin (CRYPTO: $BTC) ETF, BlackRock's Ethereum exchange-traded fund is the largest on the market, with assets under management of more than $5 billion U.S. 

BlackRock launched the ETHA fund in 2024 and it initially attracted a lot of investor capital. However, the fund has seen outflows in recent months as the price of Ethereum stalls. 

Ethereum is trading at $1,908 U.S. in early trading on Aug. 6.