The landscape of cryptocurrency investment is evolving rapidly, and one of the latest developments comes from Bitwise, a leading digital asset management firm. The company has officially filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch a spot NEAR ETF, marking a significant step toward mainstream financial integration for the NEAR Protocol ecosystem.
This move positions Bitwise at the forefront of expanding regulated crypto investment vehicles, offering investors a seamless way to gain exposure to NEAR tokens through traditional brokerage accounts—without the complexities of self-custody or navigating decentralized platforms.
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Understanding the Bitwise NEAR ETF Proposal
The proposed Bitwise NEAR ETF operates under a trust structure, where the fund’s net asset value (NAV) will track the performance of NEAR tokens held in custody, minus operating expenses and liabilities. This model mirrors Bitwise’s existing spot Bitcoin ETF (BITB), which has gained traction among institutional and retail investors seeking regulated exposure to digital assets.
By leveraging a trust-based framework, the ETF ensures transparency, accountability, and regulatory compliance. Investors can buy and sell shares on public exchanges just like any traditional ETF, making it accessible through standard investment accounts such as IRAs and 401(k)s.
A key feature of the filing is the Sponsor Fee structure: a daily-deducted fee calculated in U.S. dollars but paid monthly in NEAR tokens. This innovative mechanism aligns incentives between the sponsor and token holders while reducing reliance on fiat infrastructure.
Additionally, Bitwise has committed to covering all standard operational costs—including custody, auditing, legal services, and SEC filings—up to $500,000 per year. This cost-covering model enhances investor confidence by limiting unexpected fee burdens.
Custody and Security: Safeguarding NEAR Assets
Security remains a top priority in any crypto-based financial product. To ensure asset protection, Bitwise has appointed Coinbase Custody as the primary custodian for the proposed NEAR ETF. The assets will be stored using cold storage solutions, which keep private keys offline and significantly reduce exposure to cyber threats.
While the holdings are not FDIC-insured, they are protected under a comprehensive fidelity insurance policy designed specifically to mitigate risks associated with theft, hacking, or internal fraud. This dual-layered approach—secure storage plus insurance—aligns with best practices in institutional-grade digital asset management.
In rare circumstances where immediate trading is required, the fund may utilize a system known as Agent Execution. Under this model, a limited portion of NEAR tokens may be held in hot wallets or pooled accounts managed by authorized agents. However, this method is only activated when standard trading protocols cannot be executed efficiently.
Should additional custodians be added in the future, Bitwise plans to distribute assets based on rigorous security assessments and insurance coverage evaluations—ensuring continued alignment with investor safety standards.
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Why NEAR Protocol? The Case for Inclusion
NEAR Protocol stands out as a high-performance Layer 1 blockchain known for its scalability, low transaction fees, and developer-friendly environment. Unlike earlier blockchains that struggle with congestion and high gas costs, NEAR uses sharding technology (Nightshade) to enable parallel processing, resulting in faster throughput and improved user experience.
These technical advantages have attracted growing interest from developers building decentralized applications (dApps), gaming platforms, and Web3 infrastructure projects. As adoption increases, so does demand for regulated investment products that provide exposure to NEAR’s long-term growth potential.
By launching a spot ETF, Bitwise offers a transparent, auditable, and SEC-regulated vehicle for both retail and institutional investors to participate in NEAR’s ecosystem development—without needing to manage private keys or interact directly with blockchain networks.
Broader Trends: The Surge in Crypto ETF Filings
Bitwise’s NEAR ETF application is part of a broader wave of innovation in the digital asset space. As of May 2025, over 70 cryptocurrency-related ETFs are pending review by the SEC, according to data from Bloomberg analysts.
These filings span various asset types and structures:
- Spot ETFs for major cryptocurrencies like Bitcoin and Ethereum
- Futures-based ETFs offering leveraged or inverse exposure
- Staking ETFs that generate yield through network participation
- Funds tied to newer or niche assets such as Solana, XRP, Dogecoin, SEI, and even meme-inspired tokens
This surge reflects growing market demand for diversified, compliant crypto investment options. It also signals shifting sentiment within regulatory circles—especially following leadership changes at the SEC.
Regulatory Shifts Paving the Way for Approval
The regulatory climate for digital assets appears to be entering a new phase. After years of hesitation and enforcement-heavy approaches under former SEC Chair Gary Gensler, the appointment of Paul Atkins as the new Chair has brought fresh momentum toward establishing clear rules for crypto markets.
Atkins has publicly emphasized the need for a stable, transparent regulatory framework that supports innovation while protecting investors. His background in capital markets regulation suggests a more balanced approach—one that could accelerate approvals for well-structured proposals like Bitwise’s NEAR ETF.
Such shifts may reduce uncertainty for issuers and investors alike, encouraging more financial institutions to enter the space with compliant products.
FAQ: Common Questions About the Bitwise NEAR ETF
Q: What is a spot NEAR ETF?
A: A spot NEAR ETF directly holds NEAR tokens in custody and tracks their market price in real time. Unlike futures-based funds, it provides pure exposure to the underlying asset without derivatives or expiration dates.
Q: How does this differ from buying NEAR directly?
A: Investing through an ETF allows access via traditional brokerage accounts (like Fidelity or Charles Schwab), avoiding the need for crypto wallets or exchanges. It also brings regulatory oversight, tax efficiency, and easier integration into retirement portfolios.
Q: Will investors own actual NEAR tokens?
A: No. Shareholders own fund shares representing fractional ownership of the trust’s holdings. The actual tokens are held securely by Coinbase Custody on behalf of the fund.
Q: When might the SEC approve this ETF?
A: While no timeline is confirmed, decisions typically take several months after filing. Given recent regulatory trends, approval could come in late 2025 or early 2026—if the SEC determines the proposal meets listing standards.
Q: Can the fund lose money if NEAR’s price drops?
A: Yes. Like any investment tied to market prices, the value of the ETF fluctuates with NEAR’s performance. However, robust custody and expense management help minimize non-market risks.
Q: Are there tax implications?
A: ETFs are generally tax-efficient vehicles. Capital gains taxes apply only when shares are sold at a profit, unlike direct crypto holdings where each transaction may trigger taxable events.
👉 Stay ahead of crypto regulation trends shaping ETF approvals in 2025.
Final Thoughts: A Step Toward Mainstream Adoption
Bitwise’s S-1 filing for a spot NEAR ETF represents more than just another product launch—it’s a signal of maturation in the digital asset industry. By combining sound custody practices, transparent fee models, and alignment with evolving regulations, Bitwise is helping bridge the gap between decentralized technologies and traditional finance.
As investor appetite grows and regulatory clarity improves, we’re likely to see increased adoption of crypto-based ETFs across multiple asset classes. The NEAR Protocol, with its strong technical foundation and expanding ecosystem, is well-positioned to benefit from this shift.
For forward-thinking investors, products like the Bitwise NEAR ETF offer a compelling path to participate in Web3 innovation—safely, securely, and within familiar financial frameworks.
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