Grayscale Files with SEC to Convert NEAR Trust into Spot ETF

Grayscale Investments, a global leader in digital currency asset management, has formally filed an application with the U.S. Securities and Exchange Commission (SEC) to convert its existing NEAR Trust into a spot Exchange-Traded Fund (ETF). This strategic move follows the successful conversion of the Grayscale Bitcoin Trust (GBTC) and signals the firm’s intent to expand its spot crypto ETF offerings beyond the dominant assets.

The NEAR Trust, which holds the native tokens of the NEAR Protocol, currently operates as a private placement vehicle. Conversion into a spot ETF would allow the fund to utilize redemption mechanisms, potentially eliminating the significant premiums or discounts relative to the Net Asset Value (NAV) that have historically plagued crypto trust products.

Analysts note that while the SEC has approved spot Bitcoin ETFs, the regulatory path for altcoin spot ETFs, particularly those based on proof-of-stake protocols like NEAR, remains highly uncertain. The SEC has intensified its scrutiny regarding the classification of digital assets other than Bitcoin. If approved, the Grayscale Spot NEAR ETF would be a groundbreaking entry into the U.S. market, providing retail and institutional investors with direct, regulated exposure to the NEAR Protocol.

Source: Grayscale files with SEC to convert NEAR Trust into spot ETF