Cboe applies to the SEC for permission to allow Invesco Galaxy Bitcoin and Ethereum ETF physical redemptions

ChainCatcher news, according to Decrypt, the Cboe BZX exchange has submitted a rule change application to the U.S. Securities and Exchange Commission (SEC) to allow the Invesco Galaxy spot Bitcoin ETF and Ethereum ETF to conduct physical creation and redemption.

This mechanism allows authorized participants to directly exchange Bitcoin or Ethereum for ETF shares, rather than through cash transactions, thereby reducing the bid-ask spread, lowering trading costs, and avoiding additional brokerage commissions. However, ordinary investors still need to trade the ETF through cash mode.

Currently, the SEC has opened a public comment period, and relevant stakeholders can submit feedback before the final decision.