Grayscale has taken another step in expanding regulated crypto investment products by filing to convert its NEAR Protocol Trust into an exchange-traded fund. The filing, submitted to U.S. regulators, continues the firm’s broader strategy of transitioning private crypto trusts into publicly traded ETFs.
The preliminary prospectus outlines plans to transform the Grayscale NEAR Trust, which provides fractional exposure to NEAR Protocol tokens, into an ETF listed on NYSE Arca. The trust currently trades on the OTC market and is structured to track the value of NEAR without requiring investors to directly hold the tokens.
This trust-to-ETF pathway mirrors Grayscale’s previous conversions involving multi-asset and single-token crypto products, reinforcing the firm’s push to align digital assets with traditional market infrastructure.
Despite the regulatory progress, the NEAR Trust has faced notable performance headwinds. Since beginning public trading in September, the fund’s net asset value has fallen roughly 45%, with assets under management standing near $900,000. The decline reflects broader weakness across altcoin markets over recent months.
NEAR Protocol is positioned as a high-performance, AI-focused blockchain platform designed for decentralized applications and autonomous agents. However, the NEAR token has struggled to regain momentum. After peaking above $20 in early 2022, the token is now trading near $1.50, representing a 92% decline from its all-time high as investor interest in AI-linked altcoins has cooled.
Grayscale’s filing highlights a key trend: ETF development is progressing even as individual crypto assets face volatility. The proposed NEAR ETF underscores ongoing institutional efforts to broaden regulated access to digital assets, regardless of short-term price performance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.