Bitwise Takes Initial Step Toward NEAR Protocol ETF Launch with Delaware Trust Registration

Bitwise, a digital asset manager, has registered a trust in Delaware for a potential NEAR Protocol exchange-traded fund (ETF). This preliminary administrative step signals Bitwise's intent to pursue a NEAR ETF, offering investors direct exposure to NEAR tokens, the native cryptocurrency of the NEAR blockchain.

Registering a statutory trust in Delaware is standard procedure for asset managers exploring new investment vehicles, including ETFs. This structure facilitates asset holding and establishes the necessary governance framework. It's crucial to remember, however, that this registration isn't equivalent to a formal ETF application with the U.S. Securities and Exchange Commission (SEC).

This move is significant, highlighting the growing interest in regulated investment products beyond Bitcoin and Ethereum. NEAR Protocol, a layer-1 blockchain emphasizing scalability and user-friendliness through features like sharding, is attracting attention. Bitwise's registration suggests they anticipate investor demand for NEAR ecosystem exposure via a traditional investment vehicle.

This follows similar Delaware registrations by Bitwise for potential cryptocurrency ETFs focused on Aptos (APT) and Dogecoin (DOGE). While SEC approval isn't guaranteed, these actions demonstrate Bitwise's proactive approach to exploring diverse digital assets for ETF offerings.

Increased institutional interest in the cryptocurrency market, particularly after the approval of spot Bitcoin ETFs earlier this year, has encouraged asset managers to explore ETFs for other prominent cryptocurrencies. A NEAR ETF could provide investors with more accessible and regulated exposure to NEAR Protocol's price performance, eliminating the complexities of direct token holding and cryptocurrency custody.

Whether Bitwise will formally apply to the SEC for the NEAR ETF remains to be seen, as does the timeline for review and potential approval. The SEC's historically cautious approach to cryptocurrency-based investment products suggests a lengthy and scrutinous process.

Bitwise's Delaware trust registration represents a crucial initial step towards potentially bringing a NEAR-focused investment product to the U.S. market. Despite regulatory hurdles, this action reflects the evolving cryptocurrency investment landscape and the growing desire from asset managers to offer diversified digital asset exposure. Further developments and the SEC's stance on altcoin-based ETFs will be closely monitored by investors.

At the time of press, NEAR was trading at 2.61, following a 4.66% surge in the past 24 hours.