TLDR
- Bitwise filed for a spot NEAR ETF with the SEC.
- The ETF uses a trust model with Coinbase Custody.
- NEAR tokens will cover sponsor fees and expenses.
- Over 70 crypto ETFs are pending SEC approval.
- Regulatory shifts may boost crypto ETF approvals.
Digital asset management firm Bitwise has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch a spot Near Protocol (NEAR) exchange-traded fund (ETF). The proposed ETF aims to provide brokerage-based exposure to NEAR, enabling investors to access the asset through traditional investment accounts.
Bitwise has filed a Form S-1 with the U.S. SEC to launch the Bitwise NEAR ETF, which will track the value of NEAR held by the trust, net of operating expenses and liabilities. https://t.co/dUCKFpx5i7
— Wu Blockchain (@WuBlockchain) May 6, 2025
The filing follows Bitwise’s recent registration of the Bitwise NEAR ETF entity in Delaware, which typically precedes formal submissions to the SEC. If approved, the ETF will operate similarly to the firm’s spot bitcoin fund, BITB, by allowing investors to gain price exposure without directly holding the NEAR token. The move positions Bitwise among several issuers seeking to expand crypto-based investment vehicles for mainstream adoption.
Structure and Custody of the Proposed NEAR ETF
According to the registration details, the Bitwise NEAR ETF will operate under a trust model. The trust’s net asset value (NAV) will be reduced daily by a Sponsor Fee, calculated in U.S. dollars and paid monthly in NEAR tokens. The Sponsor is also responsible for covering regular operational costs such as custody, audit, legal, and SEC filing fees, up to $500,000 annually.
Extraordinary expenses not covered by the Sponsor, including regulatory actions, protocol upgrades, or legal disputes, may be settled by transferring or selling NEAR held by the Trust. Bitwise has designated Coinbase Custody as the primary custodian, utilizing a cold storage infrastructure to protect private keys. The assets are not FDIC-insured but safeguarded under a fidelity insurance program designed to mitigate theft risks.
The Trust may use hot wallets or trading platforms in exceptional cases through a model known as Agent Execution. In this setup, a portion of NEAR is placed in pooled accounts, though this model is activated only when the standard Trust-Directed Trading Model cannot be used. Bitwise intends to distribute holdings based on security and insurance assessments if a new custodian is added.
Broader ETF Market Trends and Regulatory Shifts
Bitwise’s NEAR ETF filing adds to the growing list of cryptocurrency-related ETFs awaiting SEC decisions. As of early May, 72 crypto ETF applications are pending review, according to Bloomberg ETF analysts. These filings include spot, futures-based, staking, and leveraged ETFs tied to a wide range of digital assets, including bitcoin, Ethereum, Solana, XRP, Dogecoin, and newer tokens like SEI and PENGU.
There are now 72 crypto-related ETFs sitting with the SEC awaiting approval to list or list options. Everything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between. Gonna be a wild year. Great roundup from @JSeyff pic.twitter.com/IHTqqxeH35
— Eric Balchunas (@EricBalchunas) April 21, 2025
The regulatory environment for digital assets has seen notable developments. Following the exit of former SEC Chair Gary Gensler, the Commission under new Chair Paul Atkins has indicated a shift toward more consistent and transparent regulatory standards. Atkins recently confirmed that creating a stable framework for digital asset markets is among the agency’s top priorities.
Bitwise’s NEAR ETF proposal reflects the continued momentum in bringing regulated digital asset products to broader financial markets. As regulatory conditions evolve, the approval of such offerings may further integrate cryptocurrency exposure into traditional investment platforms.
