- Bitwise has registered a trust for a potential NEAR Protocol exchange-traded fund (ETF) in Delaware, marking an early administrative step towards launching an ETF.
- At the time of press, NEAR is swapping hands with 2.61 after a 4.66% surge in the past 24 hours.
Digital asset manager Bitwise has officially registered a trust for a NEAR Protocol (NEAR) exchange-traded fund (ETF) in Delaware. This registration, while an early-stage administrative step, indicates Bitwise’s intention to potentially launch an ETF that directly holds NEAR tokens, the native cryptocurrency of the NEAR blockchain.
The registration of a statutory trust in Delaware is a common preliminary action taken by asset managers when exploring the launch of new investment vehicles, including ETFs. This legal structure allows for the holding of assets and the establishment of governance frameworks necessary for an ETF. However, it is crucial to understand that this registration is not equivalent to the official filing of an ETF application with the U.S. Securities and Exchange Commission (SEC).
Nevertheless, Bitwise’s move is noteworthy as it underscores the growing interest in offering regulated investment products beyond Bitcoin and Ethereum. NEAR Protocol is a layer-1 blockchain designed for scalability and user-friendliness, boasting features like sharding to enhance transaction throughput and a focus on developer accessibility. The registration suggests that Bitwise sees potential investor demand for exposure to the NEAR ecosystem through a traditional investment vehicle.
The cryptocurrency market has witnessed increasing institutional interest, particularly following the approval of spot Bitcoin ETFs earlier this year. This regulatory milestone has seemingly emboldened asset managers to explore ETFs for other prominent cryptocurrencies. The potential listing of a NEAR ETF could provide investors with a more accessible and regulated way to gain exposure to the NEAR Protocol’s price performance without directly holding the underlying tokens and navigating the complexities of cryptocurrency custody and trading.
Bitwise’s registration of a NEAR ETF trust in Delaware marks an initial but significant step in potentially bringing a NEAR-focused investment product to the U.S. market. While regulatory hurdles remain, this move reflects the evolving landscape of cryptocurrency investments and the increasing appetite from asset managers to offer diversified exposure to the digital asset class. Investors will be closely watching for further developments in this space and the SEC’s stance on altcoin-based ETFs.
At the time of press, NEAR is swapping hands with 2.61 after a 4.66% surge in the past 24 hours.
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