Major NEAR ETF Filing by Bitwise Ignites Altcoin Race for SEC Approval
Exciting news for cryptocurrency enthusiasts! Digital asset manager Bitwise has officially thrown its hat into the ring for a spot NEAR ETF, filing an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC). This move signals growing confidence in the potential for broader regulatory acceptance of various digital assets beyond just Bitcoin and Ethereum.
Bitwise Enters the NEAR ETF Race
Bitwise, a well-known player in the crypto investment space, is seeking to list an exchange-traded fund designed to track the price performance of the NEAR token. The filing indicates the fund would hold NEAR tokens directly, managed through traditional brokerage accounts, making it more accessible to mainstream investors. Coinbase Custody has been named as the proposed custodian for the Bitwise NEAR ETF.
While the S-1 filing is a crucial first step, key details such as the proposed ticker symbol, management fee, and the specific stock exchange for listing are yet to be disclosed. Bitwise also needs to file a 19b-4 form with the SEC to formally initiate the regulatory review process for the fund. This step was foreshadowed by a trust registration linked to the potential ETF in Delaware back in April.
Why is SEC Approval for Crypto ETFs Significant?
The push for SEC approval of crypto ETFs is a major theme in the digital asset market. Following the approval and successful launch of spot Bitcoin and Ethereum ETFs, which have seen substantial inflows, asset managers are now exploring other cryptocurrencies. ETFs provide a regulated and familiar investment vehicle for traditional investors who may be hesitant to buy and hold cryptocurrencies directly. Approval from the SEC lends legitimacy and potentially opens the door to wider institutional and retail adoption.
NEAR Joins the Growing List of Altcoin ETFs
The Bitwise NEAR ETF filing places NEAR Protocol alongside a significant number of other Altcoin ETFs currently under consideration by the SEC. The regulatory body now has at least a dozen applications on its desk for review, targeting various cryptocurrencies. This includes applications for:
- Litecoin (LTC)
- Dogecoin (DOGE)
- Solana (SOL)
- XRP (XRP)
- Cardano (ADA)
- Hedera (HBAR)
- Polkadot (DOT)
- Chainlink (LINK)
- Avalanche (AVAX)
- Aptos (APT)
- Sui (SUI)
Bitwise itself is actively pursuing several of these, having already filed for spot DOGE, SOL, and XRP ETFs. Their successful track record with approved spot Bitcoin and Ether ETFs (listed on NYSE Arca with combined net inflows exceeding $2.35 billion) adds weight to their new applications, including the one for the NEAR ETF.
Understanding NEAR Protocol and Its Potential
NEAR Protocol is a layer-1 blockchain designed for scalability and usability. The NEAR token currently ranks as the 44th largest cryptocurrency by market capitalization, sitting at around $2.73 billion. Proponents of NEAR often highlight its approach to the ‘blockchain trilemma’ – the challenge of simultaneously achieving security, scalability, and decentralization.
Key technical features include Nightshade sharding, which enables high transaction throughput, potentially reaching up to 100,000 transactions per second. The network is secured by a decentralized set of active validators.
Notably, the NEAR ecosystem has shown adaptability, shifting focus in 2024 towards AI infrastructure development, with plans to contribute to building large open-source language models. This evolving use case could be a factor in its appeal to investors.
What’s Next for the Bitwise NEAR ETF and Crypto ETF Market?
While the filing is a positive step, it’s important to remember that SEC approval is not guaranteed and the process can be lengthy. The SEC will review the S-1 filing and the subsequent 19b-4 filing, considering factors like market surveillance agreements, liquidity, and the potential for manipulation.
The growing number of applications for Altcoin ETFs suggests a broader trend of digital assets seeking mainstream financial integration. Success for one altcoin ETF could pave the way for others, potentially bringing more capital and attention to the wider crypto market. The Bitwise filing for a NEAR ETF is a significant development in this ongoing effort.
Summary: A New Chapter for NEAR?
Bitwise’s filing for a spot NEAR ETF marks an important milestone for the NEAR Protocol and the broader altcoin market. It signifies increasing interest from traditional finance in diversifying exposure to digital assets beyond Bitcoin and Ethereum. While the path to SEC approval involves further regulatory hurdles, this filing is a clear indication that the race for new Crypto ETF products is heating up, potentially bringing NEAR and other altcoins closer to mainstream investment portfolios.
