Bitwise launches first U.S. spot NEAR ETF as NEAR nearly triples

Bitwise has launched the first U.S. spot NEAR ETF, which began trading on U.S. exchanges this week and holds the NEAR token directly. The NEAR token has nearly tripled in value since August.

The fund is offered by Bitwise, a crypto asset manager that provides indexes and exchange-traded products. It allows investors to gain exposure to NEAR through standard brokerage accounts without buying or self-custodying the token.

The ETF is structured as a spot fund, meaning it holds underlying NEAR tokens rather than futures or other derivatives. Custodial arrangements have been set up to store the tokens on behalf of shareholders. Authorized participants and market makers will create and redeem shares in-kind, a mechanism designed to support liquidity and keep the fund price aligned with the value of its holdings.

Bitwise disclosed fee details and the fund’s initial assets at launch. Investors are directed to the fund prospectus and regulatory filings for information on fees, custody arrangements and admitted risks.

The NEAR token’s price rise since August has coincided with increased interest in layer-1 blockchains, developer activity on the NEAR network, network upgrades and inflows tied to new investment products. Market participants note that token prices are affected by broader crypto market trends and investor flows.

NEAR Protocol is a layer-1 blockchain that supports decentralized applications. The NEAR token is used to pay transaction fees, secure the network through staking and participate in governance. The protocol uses sharding and a proof-of-stake consensus model to increase transaction throughput as the network grows.

Regulatory approvals for spot ETFs tied to smaller tokens have been limited in the U.S., so the new product expands the set of on-exchange, regulated ways for U.S. investors to access NEAR. Prospective investors should consider the volatility typical of crypto tokens, risks specific to NEAR Protocol and operational risks tied to custody when reviewing the fund’s disclosures.