Bitwise Files for First NEAR ETF
Bitwise Files for First US NEAR ETF
American asset manager Bitwise Asset Management has registered a trust entity, Bitwise NEAR ETF, in Delaware. This move is a precursor to a formal Securities and Exchange Commission (SEC) filing for an exchange-traded product (ETP) tracking NEAR, the native token of the NEAR Protocol.
Key Takeaways
- Bitwise's registration marks a significant step towards launching the first NEAR Protocol-based ETF in the US.
- This ETF would provide institutional investors with regulated access to NEAR, reflecting a wider industry trend towards altcoin adoption.
If approved, Bitwise's fund would be the first US-based ETF focused on the NEAR Protocol, a Layer 1 blockchain known for its scalability and developer-friendly features. This follows the introduction of NEAR-related investment products from other firms like 21Shares (21Shares NEAR Protocol Staking ETP) and Grayscale (Grayscale NEAR Trust), although neither are structured as ETFs.
A US-listed NEAR ETF offers several advantages for institutional investors:
- Regulated access: Provides a secure and compliant pathway to invest in NEAR.
- Simplified management: Eliminates the complexities of managing private keys and custody.
- Transparency: Offers daily price transparency and alignment with market value.
Bitwise, a leader in crypto investment products, reported $5 billion in assets under management as of October 2024, representing a 400% increase that year. Their existing Bitcoin ETF (BITB), launched in January 2024, currently boasts $3.6 billion in assets under management, demonstrating strong investor demand. This success underlines Bitwise's expertise and positions them well for further expansion into altcoin ETFs.
Bitwise plans to expand its digital asset offerings beyond Bitcoin and Ethereum, anticipating increasing institutional interest in altcoins like XRP, Dogecoin, and Solana. The firm's strategy aligns with the expectation of a more crypto-friendly regulatory environment under the current administration, potentially leading to quicker approvals of crypto investment products. However, the SEC's ultimate decision on this and other pending ETF applications will be crucial to the success of Bitwise's plans.
Codeum, a leading blockchain security and development platform, offers a range of services to support the growth of the crypto industry, including smart contract audits, KYC verification, custom smart contract and DApp development, tokenomics and security consultation, and partnerships with launchpads and crypto agencies.