Bitwise Files an S-1 Registration with the SEC to Launch a Spot $NEAR ETF

Premier digital asset management firm Bitwise has filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) for a purpose-built exchange traded fund (ETF) that would offer direct exposure to $NEAR, the native token of the NEAR Protocol.

This filing is a significant step in the development of cryptocurrency investment vehicles. It would enable traditional, SEC-regulated investment funds to gain exposure to NEAR without the complexities (and fund accountant hair-pulling) that come with directly holding or managing the cryptocurrency.

If approved, this ETF could signal an opening of the floodgates for more institutional capital to enter the crypto space, a phenomenon many of us in the Bitcoin space like to call the “next bull run.”

For years, the world of decentralized finance (DeFi) and blockchain technology has been interested in decentralized finance and blockchain technology, but direct participation in these markets has proven very challenging for the mainstream investment world. Investors have expressed interest in participating directly in these markets, but directly purchasing, holding, and securing cryptocurrencies has thwarted participation in what many believe to be a world of huge growth potential. Bitwise makes ETFs, and this one is designed to work with an investment in NEAR and then is directly backed with a purchase of NEAR NFTs.

Institutional Access and the Future of Crypto ETFs

This filing is part of a broader trend in the crypto space, where both institutional and retail investors are increasingly demanding traditional financial products to interact with digital assets.

ETFs are a familiar product in traditional markets, offering exposure to various asset classes or, in an ETF’s case, a basket of assets with ease of access. They have become a hotly requested tool for investors in the digital asset world due to the promise to deliver exposure to the actual asset, or, in a tokenized funds case, the actual tokens. A spot ETF is attractive because it tracks the actual price of the underlying asset—in this case, the $NEAR token itself—without relying on futures contracts or other derivative products.

Special attention should be given to the prospect of what a $NEAR spot ETF would actually do.

If the SEC gives the green light to Bitwise’s filing, it will be a huge moment for the NEAR Protocol. It will put the relatively nascent blockchain project in the same company as some of the other big names in the space, like Solana and XRP, which are also in the race to offer access to institutional investors through ETF products.

An approval of a spot ETF for NEAR specifically could have huge implications for the token’s adoption and liquidity. It could also open up possibilities for other types of crypto ETFs to come to market, expanding investment options even further.

In addition, a NEAR ETF would probably lure in many more retail investors because it would permit them to obtain exposure to the blockchain sector through good old-fashioned brokerage accounts. In this way, an ETF could serve as an entry point to something resembling a near-infinite variety of potential investments built on the NEAR platform.

And, because the assets held within the ETF would need to be liquid enough for operators to make the sorts of trades that keep an ETF operating smoothly, it seems likely that demand for $NEAR itself would increase if the NEAR ETF succeeds. So, more retail and institutional investors exchanging $NEAR on various crypto trading platforms would seem to be the most direct pathway to a future in which the NEAR protocol has a much larger market cap and a broader base of support.

? Bitwise has filed an S-1 with the SEC to launch a spot $NEAR ETF!

This move aims to provide investors with direct exposure to @NEARProtocol's native token through a regulated exchange traded fund, without the need to hold the cryptocurrency

Why This Matters?

Institutional…

This move by @BitwiseInvest is to apply for approval to launch a spot $NEAR ETF, providing investors with direct exposure to the token through a regulated exchange traded fund. The $NEAR tokens will be held at Coinbase Custody Trust Company. This signals a significant step in the development of cryptocurrency investment vehicles.

"The preferred measure of the performance of the Fund will be the CF NEAR<>Dollar Settlement Price, which is a standard that has been created to offer as clear and accurate a measure of the price of NEAR in U.S. dollar terms as is possible, given the current state of the art in relevant technologies and the present and anticipated operating and administrative practices in relevant sectors of the economy. The intent of this standard is to provide a measure of the price of NEAR that is reliable, transparent, and consistent with prevailing market conventions in the United States for the pricing of major financial instruments and is useful for the purposes for which it is intended, taking into account the technical and economic characteristics of the products and processes involved. The standard is designed to be responsive to changes in technology and administrative practice and to promote broad participation in the standard."

The preferred measure of the performance of the Fund will be the CF NEAR<>Dollar Settlement Price, which is a standard created to offer as clear and accurate