Grayscale applies for NEAR spot ETF: a key step in the compliance process of digital assets

Grayscale Investments officially submitted the S-1 filing to the U.S. Securities and Exchange Commission on January 21, requesting to convert the Grayscale Near Trust into a spot ETF and planning to list on NYSE Arca.

If approved, this will be another significant expansion within Grayscale’s extensive product matrix and an important milestone for the NEAR protocol’s mainstream financial market entry.

01 Application Details and Product Structure

According to SEC public documents, the S-1 registration statement submitted by Grayscale details the product architecture of its NEAR Trust ETF.

This ETF, tentatively named “Grayscale Near Trust,” will directly hold NEAR tokens, providing investors with a standardized exposure to this blockchain asset.

In terms of product design, the ETF will support subscriptions and redemptions in both NEAR tokens and cash, offering flexibility for different types of investors. This design is consistent with other crypto asset ETFs previously launched by Grayscale.

To ensure asset security, Grayscale has designated Coinbase as the custodian and primary broker for the trust. This choice continues Grayscale’s consistent approach in crypto asset management, working with traditional financial institutions to meet regulatory standards for asset custody.

02 Grayscale Strategy and Regulatory Background

The NEAR Trust ETF application is not an isolated move by Grayscale but a key part of its systematic product transformation strategy.

Looking back, Grayscale began pushing to convert its flagship product GBTC into a Bitcoin spot ETF as early as 2021, ultimately paving the way for the entire industry through legal litigation.

This victory has laid a solid foundation for Grayscale’s strategic transformation. Now, the company is working to upgrade its large single-asset trust product matrix into more liquid and better-structured ETF products.

From a regulatory perspective, this application aligns with the SEC’s general listing standards for cryptocurrency ETFs proposed in Q4 2025. These standards simplify approval processes and reflect regulators’ growing recognition of the maturity of the crypto market.

Grayscale actively adheres to these guidelines, positioning the NEAR Trust ETF as a compliant product that meets investor protection and market integrity requirements.

03 Basic Overview of NEAR Protocol and Price Performance

NEAR Protocol is a layer-one blockchain platform designed to address scalability issues in traditional blockchains. It employs sharding technology and an innovative consensus mechanism called “Nightshade,” aiming to increase transaction throughput without sacrificing security.

Founded by Alexander Skidanov and Illia Polosukhin in 2018, the project has focused on developer experience and user-friendliness.

Recent market performance shows that NEAR tokens experienced a period of volatility. According to the latest data from January 21, NEAR opened at $1.5046, reached a high of $1.5493, and closed at $1.5422.

However, investors should be aware that crypto asset prices can be highly volatile. Below is an overview of NEAR’s recent price movements:

From the table, it’s evident that NEAR has experienced some price correction recently, but this has not hindered Grayscale’s progress on its ETF application.

04 Market Impact and Industry Significance

Grayscale’s application for a NEAR spot ETF has multiple far-reaching implications for the entire crypto industry. This move further promotes the integration of cryptocurrencies with traditional financial systems.

The ETF structure provides traditional investors with a compliant and convenient way to invest in crypto assets without dealing with complex technical issues like private key management.

From a market structure perspective, approval of a spot ETF could increase demand for the underlying asset. Unlike futures ETFs, spot ETFs require holding actual NEAR tokens, which could directly support the token’s price.

This trend has been validated by Bitcoin and Ethereum ETFs.

This application is also part of Grayscale’s broader product expansion strategy. Besides NEAR, the company is actively pursuing ETF applications for other crypto assets such as Solana, Polkadot, and Cardano.

This diversified product approach reflects Grayscale’s confidence in the long-term development of the crypto market and indicates growing institutional interest in non-Bitcoin cryptocurrencies.

For the NEAR ecosystem, potential approval of the ETF could boost project visibility and credibility, attracting more developers and users to its network, further promoting decentralized applications and Web3 infrastructure development.

05 Risks and Investor Considerations

Although Grayscale’s application for a NEAR spot ETF is seen as a milestone for the industry, investors should remain aware of the risks involved.

Regulatory approval remains uncertain. The SEC may extend review periods, similar to its handling of Grayscale’s Polkadot ETF application. The approval timeline and final decision are unpredictable.

The inherent volatility of the crypto market is another significant risk factor. NEAR token prices could experience sharp fluctuations before and after ETF approval, requiring investors to manage risks carefully.

The ETF structure also has limitations. While it offers a convenient investment channel, investors do not directly hold the underlying assets, which may conflict with the decentralized ethos of cryptocurrencies.

For investors considering NEAR ETF investments, it is advisable to closely monitor SEC approval progress, developments within the NEAR ecosystem, and overall market conditions.

On mainstream trading platforms like Gate, investors can trade NEAR spot directly to gain firsthand market experience, and also explore trading opportunities related to ETF derivatives.

Future Outlook

When the “Grayscale Near Trust ETF” code GSNR appears on the trading screens of NYSE Arca, traders are not just facing a new trading instrument but are also receiving an official financial invitation from the crypto world.

Coinbase will provide institutional-grade custody, and the SEC’s general crypto ETF standards issued in 2025 will serve as the foundation for compliance. Grayscale’s accumulated experience in approval processes since its legal victory in 2023 is now bringing more blockchain protocols like NEAR into the spotlight of traditional finance.

There are no bystanders in this transformation. The integration of crypto assets with traditional finance continues, and each ETF application marks a significant node in this ongoing historical process.