NEOS has submitted an application to launch a "high-yield" Ethereum ETF, aiming for higher returns through indirect ETP exposure, but with greater risk. The product will operate using a strategy of buying and selling put and call options on the spot ETF, targeting to maximize investor returns.

This move comes at a time when Ethereum is performing exceptionally well; just two weeks ago, its trading volume even surpassed that of Bitcoin ETFs, shocking the market. ETF analysts point out that strong institutional capital inflows have created opportunities for high-risk large-scale strategies like those of NEOS.

NEOS previously launched a similar high-yield Bitcoin ETF and is now expanding into the Ethereum space, referring to it as a "synthetic covered strategy" since the product only has indirect exposure to ETH, potentially bringing higher returns compared to directly correlated models. However, the proposal still needs to be approved by the U.S. Securities and Exchange Commission (SEC).