Grayscale files to convert NEAR Protocol Trust into ETF on NYSE Arca

Grayscale Investments, the world’s largest digital asset manager, has formally submitted a 19b-4 filing with the U.S. Securities and Exchange Commission (SEC) through NYSE Arca. This highly anticipated filing seeks approval to convert the existing Grayscale NEAR Protocol Trust (GNPT) into a spot Exchange-Traded Fund (ETF), marking the firm’s latest effort to broaden institutional access beyond Bitcoin and Ethereum.

The proposed Grayscale NEAR Protocol ETF would hold actual NEAR tokens, providing investors with direct exposure to the asset without the complexities of managing private keys or navigating unregulated exchanges. The conversion strategy is consistent with Grayscale’s successful regulatory path for converting its flagship trusts, emphasizing increased investor protection, enhanced liquidity, and the elimination of the persistent premium or discount volatility common in closed-end trust structures.

The 19b-4 filing specifically addresses the SEC’s concerns regarding market manipulation by citing robust surveillance sharing agreements with major spot market custodians and trading platforms. It posits that the NEAR Protocol market has reached sufficient maturity and liquidity to meet the standards required for listing on a national securities exchange like NYSE Arca.

NEAR Protocol, a prominent Layer 1 blockchain known for its scalable Nightshade sharding architecture, has garnered significant institutional attention in recent quarters. Analysts view this aggressive move by Grayscale as validation of the asset’s long-term utility and growing institutional acceptance of high-throughput blockchain infrastructure.

Should the conversion be approved, the new ETF would trade under the ticker GNPT on NYSE Arca, offering a regulated and easily accessible investment vehicle for registered investment advisors and traditional financial institutions. The filing initiates a formal review period, and the decision regarding the listing approval is expected to set a critical precedent for future altcoin trust conversions.

Source: Grayscale files to convert NEAR Protocol Trust into ETF on NYSE Arca