Bitwise Asset Management has made a significant move by filing an application with the US SEC for a spot NEAR exchange-traded fund, a groundbreaking development for the altcoin market. The announcement of the filing on May 6 signifies a growing trend of cryptocurrencies seeking approval for ETFs, reflecting the increasing interest from investors in diversified crypto exposure through regulated financial products.
The Bitwise NEAR ETF is designed to track the price movements of the NEAR token, offering investors a way to gain exposure to the digital asset without directly holding it. The fund aims to replicate the value of NEAR net of operating expenses and liabilities, providing a convenient investment option for those looking to diversify their portfolios.
Coinbase Custody has been named as the custodian for the Bitwise NEAR ETF, ensuring secure storage of NEAR tokens. While details such as the management fee, ticker symbol, and target exchange are yet to be disclosed, the fund is expected to trade on traditional brokerages, making it easily accessible to mainstream investors.
The filing for the Bitwise NEAR ETF comes at a time when the SEC is under pressure to approve crypto ETFs for a wider range of tokens beyond Bitcoin and Ethereum. Asset managers like BlackRock and Grayscale are awaiting decisions on spot ETFs for tokens such as Solana, XRP, and Cardano. The approval of Bitcoin ETFs in 2024 led to increased institutional interest, with Ethereum ETFs following suit. Now, altcoins like NEAR are seeking approval for regulated market exposure, offering diversified portfolios for investors seeking higher risk tolerance.
Investors are eagerly awaiting the SEC’s decision on the Bitwise NEAR ETF, which will derive its net asset value from the CF NEAR-Dollar Settlement Price, providing a transparent benchmark for performance. The fund’s structure allows for creation and redemption processes, ensuring liquidity for investors. By offering a regulated vehicle, Bitwise aims to bridge the gap between traditional finance and the evolving crypto ecosystem, making NEAR more accessible to those hesitant about direct blockchain investments.
The competition for altcoin ETF approvals is intensifying, with NEAR now entering the race. As regulators navigate the balance between innovation and investor protection, Bitwise’s filing highlights the crypto industry’s quest for legitimacy. Investors are anticipating the SEC’s decision, which could unlock new opportunities in the dynamic world of digital assets.