Grayscale NEAR ETF Filing: Bold Move to Convert Struggling Trust on NYSE Arca
In a significant development for digital asset markets, leading crypto investment firm Grayscale Investments has filed with the U.S. Securities and Exchange Commission to convert its Grayscale NEAR Trust into a spot exchange-traded fund (ETF) for listing on the NYSE Arca exchange. This strategic filing, submitted on Tuesday, represents Grayscale’s continued institutional push to bring cryptocurrency investment vehicles into the mainstream regulated market, even as the underlying NEAR token faces substantial price depreciation. The move follows the firm’s established blueprint of launching private trusts, moving them to over-the-counter markets, and ultimately seeking ETF conversion, a pattern that has reshaped crypto investment access.
Grayscale NEAR ETF Filing Details and Strategic Context
Grayscale formally submitted a preliminary prospectus for the Grayscale NEAR Trust, a security offering shares representing fractional ownership in NEAR Protocol tokens (NEAR). Consequently, the company now intends to convert this existing trust structure into an exchange-traded product. This conversion model is not new for Grayscale. In fact, the firm successfully converted several other products in 2025, including its Digital Large Cap Fund, its Chainlink (LINK) Trust, and its XRP (XRP) Trust into ETFs. Therefore, the NEAR filing demonstrates a consistent, methodical corporate strategy.
Bloomberg ETF specialist James Seyffart observed the trend, noting, “Crypto ETP filings continue to come across the SEC’s desk.” This pattern highlights Grayscale’s role as a pioneer in navigating the complex regulatory pathway for crypto-based financial products. The proposed ETF would trade on the New York Stock Exchange’s Arca platform, a popular listing venue for ETFs, providing investors with enhanced liquidity, transparency, and accessibility compared to the trust’s current over-the-counter (OTC) status.
Performance Challenges of the Existing NEAR Trust
Despite the ambitious filing, the existing Grayscale NEAR Trust has faced severe market headwinds. The trust began trading on the OTCQB market under the symbol GSNR in September. Currently, it reports approximately $900,000 in assets under management. More strikingly, its net asset value (NAV) per share has plummeted 45% from its inception, reflecting the brutal downturn in altcoin markets over the past four months.
The trust’s performance directly mirrors the struggles of the underlying NEAR token. NEAR Protocol, marketed as a high-performance, AI-native blockchain, saw its token price soar to an all-time high near $20 during the AI investment frenzy of January 2022. However, the token has since collapsed, losing 92% of its value to trade around $1.54. This decline occurred as the broader “altcoin season” failed to materialize in the current cycle, and investor enthusiasm for AI-themed crypto projects has significantly cooled. The following table summarizes the trust’s key metrics:
| Metric | Detail |
|---|---|
| Current Structure | Grayscale NEAR Trust |
| OTC Symbol | GSNR |
| Assets Under Management (AUM) | ~$900,000 |
| Current NAV per Share | $2.19 |
| NAV Decline Since Inception | 45% |
| Proposed New Structure | Spot Exchange-Traded Fund (ETF) |
| Proposed Listing Venue | NYSE Arca |
Grayscale’s Broader Product Expansion Strategy
Grayscale’s filing for the NEAR ETF occurs alongside other strategic product explorations. Earlier this month, the asset manager formed new Delaware statutory trusts tied to potential future products linked to Binance Coin (BNB) and Hyperliquid (HYPE). This indicates a dual-track approach: converting existing, established trusts into ETFs while simultaneously laying the groundwork for new offerings based on other digital assets. The firm’s actions suggest a long-term conviction in the diversified crypto ecosystem, despite short-term market volatility.
Key aspects of Grayscale’s conversion strategy include:
- Regulatory Navigation: Systematically moving products from private placements to public, regulated markets.
- Investor Accessibility: Converting trusts to ETFs improves liquidity, reduces premiums/discounts to NAV, and allows for intraday trading.
- Market Signaling: Demonstrating commitment to assets even during downturns, potentially stabilizing long-term interest.
Regulatory Landscape and Market Implications for Crypto ETPs
The regulatory environment for cryptocurrency exchange-traded products remains a critical factor. The SEC’s review process for the Grayscale NEAR ETF filing will be closely watched by the industry. Grayscale’s previous legal victory regarding its Bitcoin Trust conversion set a crucial precedent, but each new asset faces unique scrutiny. The approval of spot Bitcoin and Ethereum ETFs in prior years opened the door, but filings for single-asset crypto ETFs based on altcoins like NEAR represent a new frontier with distinct regulatory considerations.
Market data shows growing institutional interest in crypto ETPs globally, with products gathering billions in inflows, though Bitcoin continues to dominate gains. The conversion of a trust like the NEAR product could, if approved, provide a template for other altcoin-based vehicles. It offers a regulated, familiar investment wrapper for institutional and retail investors seeking exposure to specific blockchain protocols beyond the largest two cryptocurrencies. However, the SEC’s primary concerns—including market manipulation, custody, and liquidity—will be intensely applied to a smaller-cap asset like NEAR.
Conclusion
Grayscale’s filing to convert its NEAR Protocol Trust into a spot ETF on NYSE Arca is a bold strategic move that underscores the firm’s methodical approach to building a suite of regulated digital asset products. While the underlying NEAR token and the existing trust have faced severe performance challenges, the conversion attempt highlights a long-term institutional belief in the asset’s potential and the broader crypto ETP ecosystem. This Grayscale NEAR ETF filing represents another step in the maturation of cryptocurrency markets, testing regulatory boundaries and offering investors new pathways for exposure. The SEC’s decision will provide vital signals about the future of single-asset crypto ETFs beyond Bitcoin and Ethereum.
FAQs
Q1: What did Grayscale file with the SEC?
Grayscale Investments filed a preliminary prospectus to convert its existing Grayscale NEAR Trust, which holds NEAR Protocol tokens, into a spot exchange-traded fund (ETF) for listing on the NYSE Arca exchange.
Q2: Why is Grayscale converting the NEAR Trust to an ETF?
Conversion to an ETF provides greater liquidity, transparency, and accessibility for investors. It allows for intraday trading on a major national exchange and typically narrows the price difference between the fund’s shares and its underlying net asset value (NAV).
Q3: How has the Grayscale NEAR Trust performed?
The trust has struggled since its inception. Its net asset value per share has declined by approximately 45%, reflecting a severe downturn in the price of the underlying NEAR token, which is down about 92% from its 2022 all-time high.
Q4: Has Grayscale done this with other crypto trusts?
Yes. This follows Grayscale’s established pattern. In 2025, the firm successfully converted its Digital Large Cap Fund, Chainlink (LINK) Trust, and XRP (XRP) Trust into ETFs, following a similar path from private trust to public ETF.
Q5: What is the significance of this filing for the crypto market?
The filing tests the SEC’s willingness to approve spot ETFs for individual cryptocurrencies beyond Bitcoin and Ethereum. An approval could pave the way for more altcoin-based ETFs, while a rejection would clarify ongoing regulatory hurdles for smaller digital assets.
