NEAR Protocol Joins the ETF Battle With Bitwise SEC Filing

Bitwise Asset Management has officially filed for a spot NEAR ETF with the U.S. Securities and Exchange Commission (SEC), aiming to expand regulated access to altcoins beyond Bitcoin and Ethereum. The filing, made via an S-1 registration statement, marks the first time any asset manager has applied for a NEAR-based exchange-traded fund.

This ETF would track the market price of NEAR, the native token of the Near Protocol blockchain, allowing investors to gain exposure to the asset without holding it directly. In structure, it mirrors the firm’s existing Bitwise Bitcoin ETF (BITB), which gives institutional and retail investors a compliant route to Bitcoin via traditional brokerages.

NEAR Joins the ETF Race

The NEAR ETF filing comes amid rising interest in altcoin ETFs. Alongside NEAR, Bitwise is actively pursuing similar vehicles for Solana, Dogecoin, XRP, and Aptos. These filings represent a strategic shift, as firms seek to capitalize on growing institutional demand for diversified exposure to crypto assets in a regulated wrapper.

NEAR’s entrance into the ETF arena puts it among a handful of Layer 1 blockchains vying for mainstream legitimacy. 

Details of the ETF Structure

While Bitwise has not disclosed a ticker symbol, management fee, or target exchange, the structure is in line with other spot ETFs. The fund will be backed by actual NEAR tokens held in cold storage by Coinbase Custody Trust Company, which is named as the official custodian in the filing.

Importantly, Bitwise plans to base the ETF’s net asset value (NAV) on the CF NEAR-Dollar Settlement Price, a benchmark designed to offer transparency and minimize manipulation. This approach aligns with how other spot ETFs, including those for Bitcoin and Ethereum, determine daily valuations.

The ETF’s structure will also include creation and redemption mechanisms, ensuring liquidity and enabling market makers to keep the ETF's price in line with NEAR’s spot value.

The decision to pursue a NEAR ETF is significant for several reasons. First, it signals that demand for altcoin exposure through regulated instruments is maturing. Second, it could drive new institutional capital into NEAR, a project currently ranked 33th by market capitalization at $2.77 billion, according to CoinMarketCap.

Growing Pressure on SEC to Approve Altcoin ETFs

Following the approval of spot Bitcoin ETFs in early 2024 and anticipated greenlighting of Ethereum ETFs, asset managers are now pressing the SEC to expand access to altcoins. BlackRock, Grayscale, and others have similar filings pending for Solana, Cardano, and XRP, underscoring how the regulatory bottleneck is now the primary hurdle for wider market participation.

The crypto industry argues that altcoin ETFs will enhance investor protection by shifting trading activity from unregulated offshore platforms to transparent, compliant products. Critics, however, worry about the fragmented nature of altcoin liquidity and the potential for price manipulation.

Still, the SEC is under growing scrutiny to explain why only Bitcoin and Ethereum should qualify for ETF treatment, especially as institutional demand for diverse digital asset exposure grows.

NEAR’s Technology and Ecosystem

Near Protocol positions itself as a high-performance, developer-friendly blockchain, using a unique sharding design to achieve scalability. It aims to solve the so-called blockchain trilemma—the challenge of simultaneously achieving decentralization, scalability, and security.

It uses “Nightshade” sharding to divide the network into multiple parallel chains, improving throughput without sacrificing decentralization. The project has seen adoption in decentralized finance (DeFi), gaming, and enterprise applications.

NEAR’s technology and track record make it a logical candidate for ETF exposure. But it still faces stiff competition from established Layer 1s like Ethereum, Solana, and Avalanche in both market capitalization and developer activity.

What Happens Next

The S-1 filing is only the first step. Bitwise will also need to submit a 19b-4 form, which must be approved by the SEC before the ETF can launch. This second filing outlines how the ETF will trade on a national securities exchange.

No timeline has been announced for the 19b-4 submission or SEC review, but past ETF processes suggest that approval could take several months—if not longer. Regulatory sentiment toward altcoin ETFs will also be shaped by the SEC’s handling of ongoing litigation with crypto firms and the outcome of other ETF filings.