Nikolas Sargeant
Bitwise Asset Management has made history by filing the first-ever spot NEAR Protocol exchange-traded fund application with the U.S. Securities and Exchange Commission, representing a watershed moment for the altcoin marketplace.
Announced on May 6, this groundbreaking filing positions NEAR Protocol—a high-performance layer-1 blockchain designed for scalability—among the vanguard of cryptocurrencies seeking regulated ETF approval. The move reflects increasing institutional demand for diverse cryptocurrency exposure through conventional financial instruments.
The proposed Bitwise NEAR ETF is structured to track NEAR token's price performance, less operational expenses, giving investors seamless exposure without the complexities of direct digital asset custody.
Coinbase Selected as Institutional Custodian for NEAR ETF Holdings
The registration statement identifies Coinbase Custody as the designated custodian responsible for the secure storage and management of the fund's NEAR tokens.
While the filing omits specific details regarding management fees, ticker symbol, and listing exchange, the ETF is designed to trade on traditional brokerage platforms, potentially opening NEAR Protocol to mainstream investment portfolios.
Altcoin ETF Race Intensifies as NEAR Joins Growing List of Contenders
This application emerges amid mounting pressure on the SEC to expand cryptocurrency ETF approvals beyond Bitcoin and Ethereum. Currently, major asset managers including BlackRock and Grayscale await regulatory decisions on spot ETFs for alternative cryptocurrencies including Solana, XRP, and Cardano.
The successful launch of Bitcoin ETFs earlier in 2024 catalyzed unprecedented institutional participation, with Ethereum ETFs subsequently gaining approval. Now, emerging protocols like NEAR are competing for regulated market access, offering portfolio diversification options for investors with higher risk tolerance.
Market Anticipates Regulatory Decision on Expanding Crypto Investment Options
The Bitwise fund will utilize the CF NEAR-Dollar Settlement Price as its transparent valuation benchmark, establishing a reliable methodology for calculating net asset value.
The ETF's architecture incorporates creation and redemption mechanisms to ensure robust market liquidity. By introducing a regulated investment vehicle, Bitwise aims to eliminate barriers between traditional finance and blockchain innovation, making NEAR Protocol accessible to investors hesitant about direct cryptocurrency participation.
Competition for altcoin ETF approvals continues intensifying, with NEAR Protocol now officially entering consideration.
As regulatory authorities balance innovation with investor safeguards, Bitwise's application underscores the cryptocurrency industry's continued progression toward mainstream financial legitimacy. Investors now await the SEC's decision, which could potentially unlock significant new opportunities within the evolving digital asset landscape.
