Today's news seems to have left many people confused about what it means and what it implies. Currently, both Bitcoin and Ethereum ETFs are cash redemptions, meaning that when investors redeem, the issuer must sell the corresponding amount of Bitcoin and Ethereum and then pay the cash to the investors. In contrast, physical redemption does not require selling; investors can directly receive Bitcoin and Ethereum. There are two benefits: first, it can reduce taxes for investors, as cash redemptions are subject to taxes upon receipt. Second, it can increase the liquidity of ETF trading, as it eliminates the wear and tear of back-and-forth buying and selling. Third, it can reduce selling pressure to some extent, as a portion of physical redemptions may not be sold immediately. However, currently, Bitcoin and Ethereum ETFs have not made substantial progress toward physical redemptions; they are still only in proposal stages. The news means that the SEC has confirmed receipt of BlackRock's application for physical redemption, but whether it can be approved still needs to go through the process.