A $NEAR exchange-traded fund (ETF) has been registered in Delaware by Bitwise Asset Management. Following recent ventures into ETFs for assets like Aptos and Dogecoin, as well as crypto index funds, the company is currently focusing on NEAR Protocol, a high-performance layer-1 blockchain designed for scalability and developer accessibility.
This registration prepares Bitwise to potentially submit an S-1 application, the next regulatory step in the process of creating a publicly traded ETF, although it does not yet secure official permission from the Securities and Exchange Commission (SEC).
Why Bitwise Chose $NEAR and Delaware
With features like sharding and an intuitive programming environment, NEAR Protocol has become well-known for its creative approach to blockchain scaling. Both institutional and retail investors are seeking diverse exposure to networks beyond the well-known heavyweights as DeFi, NFTs, and other blockchain-powered applications continue to gain popularity.
Furthermore, because of its easy trust formation process and favorable legal climate, Delaware has become the preferred location for many crypto ETF registrations. Bitwise is following a playbook it used for previous filings, such as the Aptos and Dogecoin ETFs, by registering the NEAR ETF in Delaware.
Following this approach allows asset managers to set up the necessary legal entities before seeking federal approval, and it expedites the process once the SEC is ready to review new crypto ETF applications.
The Path Ahead for the NEAR ETF
Several steps remain before the NEAR ETF becomes available to investors, despite having taken the significant registration step. Bitwise will likely need to file an S-1 registration statement with the SEC, detailing the fund’s structure, investment strategy, and risk disclosures.
Despite the review process potentially being lengthy, particularly for products involving newer or less established crypto assets, if approved, the Bitwise NEAR ETF would join a growing roster of crypto investment products for both institutional and retail investors.
The move could also boost NEAR’s visibility and liquidity, potentially driving further adoption and development on the protocol.
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