Bitwise has filed with the SEC for the first spot ETF based on NEAR, the native cryptocurrency of Near Protocol, amid the growing boom in crypto ETFs in the United States.
The crypto market is becoming increasingly diversified and mature, and the emergence of new exchange-traded funds (ETFs) backed by digital assets continues to mark a key milestone for the integration of cryptocurrencies into the traditional financial system.
Recently, Bitwise, one of the leading digital asset managers in the United States, took another decisive step towards this greater integration, by filing with the SEC an S-1 form for the creation of a NEAR-based spot ETF, the native cryptocurrency of Near Protocol.
SHOP NEAR EASY AND SAFE HEREWith this initiative, NEAR joins a growing list of crypto projects seeking regulatory approval to offer traditional investors the opportunity to access digital assets without having to directly manage cryptocurrencies. The filing for this spot ETF reinforces NEAR's relevance in the ecosystem, while opening a new chapter in the democratization of digital investments and the institutional legitimization of crypto assets.
The rise of crypto ETFs: democratization and security for traditional investors
The arrival of crypto ETFs has revolutionized the way traditional investors approach the digital asset market. These financial instruments offer a regulated avenue for gaining exposure to crypto assets through conventional investment accounts. Bitwise, for example, already has approved Bitcoin and Ethereum ETFs, which have attracted billions of dollars in net inflows since their launch last year. Along with other managers that also operate cryptocurrency ETFs, such as BlackRock, Fidelity, and Grayscale, traditional and institutional investors are demonstrating their enormous appetite for these cryptocurrency-backed financial products.
The case of the NEAR spot ETF follows this trend, as the fund proposed would backed directly by NEAR tokens, and would allow investors to benefit from fluctuations in the cryptocurrency's market price. According to the company's presentation, this model will not only facilitate access to NEAR, but will also provide security and transparency.
ACCESS CRYPTO WITH ONE CLICKOn the other hand, the proliferation of crypto ETFs, with applications for Litecoin, Dogecoin, Solana, XRP, and other altcoins, reflects the market's growing confidence in the viability and potential of digital assets beyond Bitcoin and Ethereum. For experts, this proliferation phenomenon is transforming the perception of cryptocurrencies, which are moving from being speculative assets to recognized financial instruments in demand by an ever-growing public.
NEAR Protocol: An innovative blockchain and its role in the cryptoeconomy
NEAR Protocol is a Layer 1 blockchain, an independent network that doesn't rely on other blockchains to function. It's designed to solve the so-called "trilemma" of scalability, security, and decentralization.
Launched in 2020, Near has stood out for its high performance, capable of processing up to 100.000 transactions per second thanks to a technology called Nightshade sharding, which divides the network into fragments to increase efficiency and speed. Furthermore, its consensus mechanism, proof-of-stake, is more energy efficient than the proof-of-work used by other blockchains, such as Bitcoin.
In terms of growth and progress, the NEAR community has evolved from a focus on decentralized finance (DeFi) to artificial intelligence infrastructure, announcing ambitious plans to build the world's largest open-source language model. This transition positions NEAR as a key player at the intersection of blockchain and emerging technologies, broadening its appeal to developers and investors.
The NEAR cryptocurrency, currently in the top 40 by market capitalization, is the backbone of the network: it is used to pay fees, govern the blockchain, and reward validators. Its inclusion in a spot ETF reinforces its legitimacy and visibility, facilitating mass adoption and integration into institutional portfolios.
TRADE WITHOUT COMPLICATIONS ON BIT2MERegulatory implications for crypto ETFs in the US
Bitwise's filing of Form S-1 with the SEC is just the first step in a lengthy regulatory process. For the NEAR spot ETF to materialize, the company must still complete the 19b-4 filing, which initiates the formal review process by the SEC.
Currently, although the SEC has shown a more favorable approach toward cryptocurrencies, it has not yet provided a satisfactory response to applications from other fund managers to list new cryptocurrency ETFs on the stock market. In fact, recently, the agency has been delaying its decision on some of these applications, including the Polkadot ETF, Dogecoin and XRP, among others.
However, despite these actions, expectations remain high, and both analysts and industry experts believe the agency will greenlight several crypto exchange-traded funds before the end of the year. Growing investor demand, the institutionalization of the sector, and the adoption of custody and transparency standards by companies operating in this market could pave the way for eventual approval.
In this sense, the approval of a NEAR spot ETF would have a significant impact on the market, as it would not only further legitimize Near Protocol, but also open the door to the entry of institutional and retail capital into this blockchain ecosystem.
OPERATE SAFELY WITH NEAR PROTOCOLInvesting in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
