Bitwise Asset Management has officially filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) based on NEAR. The ETF will give traditional investors access to NEAR, the native token of the NEAR blockchain, through standard brokerage platforms. Despite the potential impact on wider adoption, the price of the NEAR token has not responded positively and has traded lower since the announcement.
Bitwise’s filing puts NEAR in a growing group of altcoins seeking regulatory approval for spot ETFs. According to the filing, filed on May 6, Bitwise’s proposed NEAR ETF aims to replicate the performance of the trust-managed NEAR, minus fees and liabilities. Coinbase Custody, a New York-regulated company, will secure digital assets in cold storage and will only be able to use hot wallets under certain conditions.
The ETF is structured as a trust, with the sponsorship fee calculated in US dollars and paid in NEAR tokens. Bitwise will cover operating costs of up to $500,000 per year, and the Trust will have the right to liquidate NEAR if extraordinary expenses arise.
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