March 13th news, according to Decrypt, Cboe BZX Exchange has submitted a proposed rule change to the U.S. Securities and Exchange Commission (SEC) on behalf of Invesco Galaxy to allow its spot Bitcoin ETFs and Ethereum ETFs to create and redeem shares in physical creation and redemption. In-kind redemption and creation allow for direct exchange of underlying assets (Bitcoin or Ethereum) with ETF shares, thereby bypassing cash demand. This approach eliminates the need for participants to sell underlying cryptocurrencies to create shares, reduces bid-ask spreads, and avoids additional brokerage commissions. A public comment period has been opened as the SEC reviews Cboe's proposed rule changes, allowing stakeholders to share their ideas before final decisions. Authorized participants — institutions involved in the creation and redemption process — will be eligible for the physical transaction model, the document says. Individual investors will still need to use a cash-based model when purchasing or redeeming ETF shares.