In a landmark move for the cryptocurrency industry, Grayscale Investments has formally submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for a spot exchange-traded fund (ETF) based on Near Protocol (NEAR). This filing, reported on March 15, 2025, represents a strategic expansion beyond Bitcoin and Ethereum products and is the first major application for a pure altcoin spot ETF in the United States.
The filing initiates the official process for creating the Grayscale Near Protocol Trust. The S-1 document provides the SEC with exhaustive details about the proposed fund's structure, objectives, and associated risks. The application follows Grayscale's landmark legal victory against the SEC in 2023, which compelled the regulator to review its Bitcoin ETF conversion application and established a crucial legal framework now being leveraged for other assets.
Grayscale's selection of NEAR is a calculated strategic decision. NEAR operates as a decentralized, proof-of-stake layer-1 blockchain designed for scalability via its Nightshade sharding technology. Analysts point to NEAR's consistent top-30 market capitalization, robust developer community fostered by the NEAR Foundation, and relatively well-documented tokenomics as factors making it a compelling candidate for this pioneering regulatory step.
Financial regulatory experts emphasize the steep climb ahead, noting the SEC's primary concerns with any crypto ETF are investor protection, market surveillance, and custody. "For an asset like NEAR, the staff will meticulously examine trading volume, liquidity across global exchanges, and the potential for wash trading," notes a former SEC enforcement attorney. A key hurdle will be demonstrating a compliant custody framework for the NEAR tokens.
The immediate market impact of the filing was a noticeable uptick in NEAR's trading volume and price. More importantly, the announcement signals that major traditional finance players are preparing for a multi-asset crypto future. A successful approval would create a template for other altcoin ETFs, potentially unlocking billions in institutional capital. Conversely, a rejection could reinforce the perceived regulatory ceiling for non-Bitcoin crypto securities.
This filing tests whether the regulatory framework established for Bitcoin spot ETFs—involving surveillance-sharing agreements with regulated exchanges—can be adapted to a different underlying market. The outcome will resonate widely: approval would validate NEAR's technology in regulators' eyes and pressure other asset managers like BlackRock and Fidelity to expand their crypto ETF suites, while rejection might push innovation toward other structures or more crypto-friendly jurisdictions.
