In an exciting development for the cryptocurrency sphere, digital asset manager Bitwise has taken significant steps by filing with the U.S. Securities and Exchange Commission (SEC) to list a spot exchange-traded fund (ETF) focused on the NEAR token. This move not only highlights Bitwise’s growing portfolio but also contributes to the expanding list of alternative cryptocurrencies (altcoins) seeking regulatory approval. According to Bitwise’s registration statement from May 6, the Bitwise NEAR ETF aims to track price movements of the NEAR token while managing expenses through traditional brokerage platforms.
Notably, Coinbase Custody has been designated as the proposed custodian for this new ETF, although details regarding the management fee, specific ticker symbol, and target stock exchange remain undisclosed. To initiate the regulatory approval process, Bitwise is expected to file a 19b-4 application with the SEC. This step follows the registration of a trust linked to the NEAR ETF, which was completed in Delaware on April 28.
“The SEC now has at least a dozen spot crypto ETFs to review in 2025, showcasing a growing interest in cryptocurrency investment vehicles.”
As of now, the SEC is evaluating a variety of spot crypto ETFs, including applications for popular cryptocurrencies such as Litecoin, Dogecoin, and Solana. Bitwise is no newcomer to this space; it has previously submitted proposals for spot ETFs tied to Dogecoin, Solana, and XRP, while also having successfully launched approved ETFs for Bitcoin and Ether that have attracted considerable investor interest. Since their introduction last year, these offerings have garnered a remarkable $2.35 billion in net inflows.
The NEAR token, currently ranked as the 44th largest cryptocurrency by market capitalization at an impressive $2.73 billion, powers the layer-1 Near blockchain. This platform was initially seen as a strong competitor to Ethereum, addressing the so-called “blockchain trilemma” by focusing on security, scalability, and decentralization. Utilizing advanced Nightshade sharding technology, Near showcases its capability to process up to 100,000 transactions per second, all while being secured by a network of 265 active validators.
“In a notable shift for 2024, the Near ecosystem is pivoting from decentralized finance to artificial intelligence, with plans to develop a major open-source large language model.”
This evolution signals a dynamic future for the NEAR blockchain as it strives for innovation and relevance in a rapidly changing industry landscape. As Bitwise contends with the regulatory hurdles ahead, the growing interest in cryptocurrencies and ETFs signifies a pivotal moment for market participants and investors alike.
Bitwise Files for NEAR ETF Amid Growing Crypto Assets
Digital asset manager Bitwise has taken a significant step by filing to list a spot NEAR exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC). Here are the key points surrounding this development:
- Bitwise NEAR ETF Application:
- Bitwise aims to track the price movements of the NEAR token minus expenses.
- Coinbase Custody has been proposed as the custodian for the ETF.
- Details on the management fee, ticker symbol, and stock exchange are yet to be disclosed.
- Regulatory Approval Process:
- Bitwise needs to file a 19b-4 filing with the SEC to start the approval process.
- The application adds to a growing list of over a dozen other spot crypto ETFs waiting for SEC review.
- NEAR Token Status:
- NEAR is currently the 44th largest cryptocurrency with a market cap of $2.73 billion.
- Once seen as a potential Ethereum challenger, NEAR focuses on solving the “blockchain trilemma” of security, scalability, and decentralization.
- Near Blockchain Capabilities:
- Utilizes Nightshade sharding to process up to 100,000 transactions per second.
- Secured by 265 active validators, enhancing its decentralization and security.
- Shift in Ecosystem Focus:
- The Near ecosystem has pivoted from decentralized finance to AI infrastructure in 2024.
- Plans include developing the world’s largest open-source large language model.
This development could significantly influence both the crypto market and traditional investors looking to diversify their portfolios with cryptocurrencies.
Bitwise’s NEAR ETF Filing: A Competitive Landscape Analysis
In the evolving world of cryptocurrency exchange-traded funds (ETFs), Bitwise’s recent filing for a spot NEAR ETF represents a significant stride in an increasingly competitive market. As the SEC faces a growing number of applications—over a dozen, including sought-after cryptocurrencies like Litecoin, Dogecoin, and Solana—the landscape is getting crowded. The Bitwise NEAR ETF aims to track the price movements of the NEAR token, tapping into the broader crypto investor demographic looking for regulated investment options.
Competitive Advantages: One of the primary advantages of Bitwise’s approach is its established credibility in the crypto management space. With existing successes, including approved Bitcoin and Ether ETFs that have amassed substantial capital inflows, Bitwise leverages its track record to attract investor confidence. Additionally, naming Coinbase Custody as the proposed custodian implies a partnership with a well-respected institution, which may bolster trust among potential investors. Furthermore, NEAR’s innovative blockchain technologies position it as a forward-thinking project, appealing to investors with a keen interest in advanced crypto solutions and scalability.
Disadvantages to Consider: However, the landscape is not without challenges. The SEC’s scrutiny of multiple applications could lead to delays or rejections, and a backlog might frustrate investors wishing for timely market entry. Moreover, the inherent volatility of the NEAR token, coupled with the competitive nature of altcoins, makes predicting investor sentiment tricky. Additionally, while Bitwise has a strong history, it now faces intense competition from other asset managers, which may dilute market interest and investment potential in NEAR-specific offerings.
Who Stands to Gain or Lose? This filing could benefit both seasoned crypto investors and newcomers looking to diversify their portfolios with regulated options. With NEAR’s systemic transition from decentralized finance to AI infrastructure, tech-savvy investors may find intriguing prospects within this ETF. Conversely, existing crypto-focused funds might feel pressured as more ETFs enter the market, potentially fracturing their investor base and diminishing their unique selling propositions. As more participants vie for limited investor attention, differentiation through innovation and strategic partnerships will be crucial for their survival.
