Bitwise Registers NEAR Protocol ETF: A Bold Step into the NEAR Ecosystem

Bitwise Asset Management, a prominent player in the digital asset investment landscape, has once again demonstrated its commitment to expanding its crypto offerings with a significant strategic move. The company has officially registered an entity based on the NEAR Protocol in the state of Delaware, United States, marking a potential foray into a dedicated investment product centered around this innovative blockchain platform.

The formation of a Delaware statutory trust named “Bitwise NEAR ETF” on April 24, 2025, underscores Bitwise’s increasing seriousness about broadening its exposure within the burgeoning cryptocurrency market. This registration, while not immediately translating to a publicly traded fund, represents a crucial preliminary step before the company can submit a formal proposal to the United States Securities and Exchange Commission (SEC) for the launch of a NEAR Protocol ETF.

This development arrives at a time of growing institutional interest in a wider array of digital assets beyond Bitcoin and Ethereum. As the crypto space matures, investors are increasingly seeking diversified exposure to promising layer-one protocols and their associated ecosystems. NEAR Protocol, known for its scalability, user-friendliness, and vibrant developer community, has emerged as a compelling contender in this landscape.

Bitwise’s decision to register an entity related to a NEAR Protocol ETF signals a belief in the long-term potential and technological underpinnings of the NEAR blockchain. By taking this initial administrative step, Bitwise is positioning itself to potentially capitalize on the increasing demand for investment vehicles that provide exposure to the native token of the NEAR network, $NEAR.

Understanding the Significance of a Delaware Statutory Trust

The choice of forming a Delaware statutory trust is a common practice for entities intending to launch ETFs in the United States. Delaware’s legal framework offers a well-established and flexible structure that is often favored for investment vehicles. This registration essentially lays the groundwork for the potential creation of a regulated investment product that could track the performance of the NEAR Protocol or assets within its ecosystem.

It’s important to emphasize that this registration is not the final hurdle. The next crucial step for Bitwise would involve submitting a comprehensive application to the SEC for the approval of the NEAR Protocol ETF. The SEC’s review process for cryptocurrency-based ETFs has historically been rigorous, involving considerations around market manipulation, investor protection, and the custody of underlying assets.

NEAR Protocol: A Deep Dive into its Potential

NEAR Protocol is a layer-one blockchain designed for usability and scalability. It utilizes a unique sharding technology called “Nightshade” that aims to achieve high transaction throughput without compromising security. This innovative approach allows NEAR to process transactions in parallel, significantly increasing its capacity compared to traditional monolithic blockchains.

Beyond its technical prowess, NEAR boasts a rapidly expanding ecosystem of decentralized applications (dApps) spanning various sectors, including DeFi, NFTs, and gaming. The platform’s focus on user experience, through features like human-readable account names and a progressive onboarding process, has contributed to its growing adoption among developers and users alike.

The native token of the NEAR Protocol, $NEAR, plays a crucial role within the ecosystem. It is used for transaction fees, staking to secure the network, and governance, allowing holders to participate in the decision-making processes that shape the future of the protocol.

Bitwise’s Expanding Crypto Footprint

Bitwise Asset Management has established itself as a forward-thinking firm in the digital asset space. The company offers a range of cryptocurrency investment products, including index funds and actively managed funds focused on Bitcoin, Ethereum, and other digital assets. Their move to register a NEAR Protocol ETF entity aligns with their strategy of providing investors with diverse and regulated pathways to participate in the crypto market.

This latest development follows Bitwise’s previous efforts to launch innovative crypto investment products. Their proactive approach to exploring and potentially offering exposure to emerging blockchain technologies underscores their belief in the transformative potential of the digital asset class.

The Road to SEC Approval: Challenges and Opportunities

While the registration of the “Bitwise NEAR ETF” is a positive signal, the journey to receiving SEC approval can be complex and time-consuming. The SEC has been cautious in its approach to cryptocurrency ETFs, primarily due to concerns surrounding market volatility and the potential for fraud and manipulation.

However, the increasing maturity of the crypto market, coupled with growing institutional interest, may pave the way for a more favorable regulatory environment for such products. The approval of Bitcoin spot ETFs in early 2024 marked a significant milestone, potentially setting a precedent for other layer-one blockchain ETFs like the NEAR Protocol ETF.

If approved, a NEAR Protocol ETF could offer several benefits to investors:

• Simplified Exposure: It would provide a convenient and regulated way for investors to gain exposure to $NEAR without the complexities of directly purchasing, storing, and managing the digital asset.
• Increased Liquidity: An ETF structure could enhance the liquidity of $NEAR by making it accessible to a broader range of investors through traditional brokerage accounts.
• Potential for Institutional Adoption: ETFs are often favored by institutional investors due to their familiar structure and regulatory oversight. The launch of a NEAR Protocol ETF could attract significant institutional capital into the NEAR ecosystem.

The Competitive Landscape of Crypto ETFs

Bitwise is not the only asset manager exploring the possibility of offering ETFs based on cryptocurrencies beyond Bitcoin and Ethereum. Several other firms have also expressed interest in launching products tied to alternative layer-one protocols. This growing interest reflects the increasing recognition of the potential of these emerging blockchain technologies.

The successful launch and adoption of a NEAR Protocol ETF would depend on various factors, including the SEC’s regulatory stance, market demand, and the performance of the NEAR Protocol itself. Bitwise’s early move to register an entity suggests a strategic intent to be at the forefront of this evolving landscape.

Implications for the NEAR Ecosystem

The potential launch of a NEAR Protocol ETF could have significant positive implications for the NEAR ecosystem. Increased accessibility to $NEAR through a regulated investment vehicle could drive greater demand for the token, potentially leading to price appreciation. Furthermore, it could raise the profile of the NEAR Protocol among a wider audience of investors, developers, and users, fostering further growth and adoption of its applications and services.

The validation that comes with a major asset manager like Bitwise pursuing a NEAR Protocol ETF could also attract more institutional capital and development activity to the ecosystem, further strengthening its position in the competitive blockchain landscape.

Looking Ahead: The Path to a NEAR Protocol ETF

The registration of the “Bitwise NEAR ETF” is an encouraging first step, but several milestones remain before it could potentially become available for trading. Bitwise will need to file a detailed application with the SEC, outlining the structure of the ETF, its investment strategy, and the measures in place to ensure the security and custody of the underlying $NEAR tokens.

The SEC will then conduct a thorough review of the application, considering factors such as market integrity, investor protection, and compliance with regulatory requirements. This process can take a significant amount of time, and there is no guarantee of approval.

Despite the regulatory hurdles, Bitwise’s proactive approach signals a strong belief in the future of the NEAR Protocol and the potential demand for a regulated investment product providing exposure to its native asset. The crypto community will be closely watching the progress of this initiative, as it could pave the way for greater institutional adoption of the NEAR ecosystem.

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Conclusion: A Significant Step for NEAR and the Crypto ETF Landscape

Bitwise’s registration of a NEAR Protocol ETF entity in Delaware represents a significant development for both the company and the broader cryptocurrency market. It underscores the growing institutional interest in diversifying crypto exposure beyond the two dominant assets and highlights the increasing recognition of the potential of innovative layer-one protocols like NEAR.

While the path to SEC approval remains uncertain, this move by Bitwise is a clear indication of their commitment to expanding their crypto offerings and providing investors with new and regulated ways to participate in the digital asset revolution. The potential launch of a NEAR Protocol ETF could mark a new chapter in the evolution of crypto investment products and further solidify NEAR Protocol’s position as a leading blockchain platform. The industry awaits the next steps in this exciting development.