As announced this past Wednesday, Grayscale Investments will soon implement the 9-for-1 stock split on its Ethereum Trust (ETHE) in an effort to increase overall liquidity and affordability. As soon as December 17, all shareholders prior to December 14 will be gifted an extra eight ETHE per each share they possess. Then, these eight ETHE will notably have 1/9th of the original price value of the current share.
Reports say that Grayscale’s Ethereum Trust currently holds over 29 million shares valuing at 0.09284789 Ether (ETH) each. Once the stock split finalizes, there will now be about 265.6 million ETHE shares to go around, with each equating at approximately 0.01031643 ETH, ninth of the current value as mentioned above.
However, it is worth noting that when it comes to stock splitting, each new share will have significantly lesser value than the previous ones as there will now be more outstanding shares. On top of that, companies would most likely split their share in the hopes of increasing the total number of shares presently going around, which, in turn, boosts liquidity.
That being said, with each share now just a fraction of the original’s price value, retail investors will now have an easier time of acquiring them, as they would now be considerably much cheaper. Typically, retail investors are put off by the concept of acquiring shares due to its expensive nature – split shares; however, is a different discussion entirely.