Nate Geraci, the CEO of The ETF Store, wrote on X platform that physical Bitcoin and Ethereum ETFs still face significant regulatory challenges. Firstly, these products do not allow for physical redemption or creation, meaning investors cannot directly participate in ETFs using actual cryptocurrency. Secondly, options trading is also prohibited, limiting investors' ability to use derivative tools to manage risk. Moreover, the inability to engage in staking on a physical Ethereum ETF has affected the product's functionality. Despite these challenges, they have still set records within the ETF industry, indicating a strong interest and demand from investors in physical Bitcoin and Ethereum ETFs.