In a significant move for the cryptocurrency market, Bitwise Asset Management has filed for a spot NEAR ETF with the United States Securities and Exchange Commission (SEC). This innovative financial product aims to provide investors with direct exposure to the price of the NEAR token by holding actual NEAR tokens in custody, thereby allowing them to invest in this growing digital asset without needing to manage the tokens themselves.
The filing, submitted on May 6, outlines that the proposed Bitwise NEAR ETF will track the CF NEAR-Dollar Settlement Price benchmark. This benchmark is calculated by CF Benchmarks, reinforcing the ETF’s commitment to transparency and accuracy. Coinbase Custody Trust Company has been chosen as the custodian, ensuring reliable and secure management of the NEAR tokens.
NEAR, the native token of the Near Protocol, was launched in 2020 and has gained recognition for its high throughput and energy-efficient proof-of-stake consensus mechanism. The protocol has been designed to address the quintessential blockchain trilemma of scalability, security, and decentralization through innovative techniques like Nightshade sharding.
Notably, Bitwise’s NEAR ETF is structured as a Delaware statutory trust and will issue shares representing fractional ownership of the NEAR tokens it holds. Unlike many ETFs that depend on derivatives or active trading strategies, Bitwise will manage the creation and redemption of shares in cash. Only authorized financial participants will be able to conduct redemptions and purchases, emphasizing a streamlined and regulatory-compliant process.
For the ETF to proceed, Bitwise will need to submit a 19b-4 form, which formally initiates the SEC’s review process. Although the filing does not yet disclose the ETF’s ticker symbol or the exchange it intends to list on, the news has already sparked interest in the NEAR market, which rallied approximately 5.7% following the announcement—though it faced a slight correction, dropping by 1.6% to $2.29.
This filing is part of a larger trend, as Bitwise joins a roster of companies seeking to bring altcoin-based ETFs to market in 2025. Other prominent applications include ETFs for Solana (SOL), Cardano (ADA), and Dogecoin (DOGE), showcasing the growing interest in diversifying cryptocurrency investment products.
With the SEC currently delaying decisions on various proposed ETFs, including Bitwise’s offerings for Bitcoin and Ethereum, the crypto community is eager for regulatory clarity. The recent appointment of crypto-friendly Paul Atkins as the new SEC chair has raised hopes for a more favorable regulatory environment for digital asset products. However, the SEC has yet to issue any major approvals during his tenure, leaving many investors in anticipation.
