Grayscale’s NEAR ETF: A Financial Fiasco or a Lucrative Gamble?

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Grayscale, that paragon of financial innovation, has once again outdone itself by filing a Form S-1 to metamorphose its NEAR Trust into a spot ETF, complete with staking, a NYSE Arca listing, and Coinbase custody-though one wonders if the market will be as enamored as the company’s press release.

  • Grayscale, ever the pioneer, has filed a Form S-1 to rebrand its NEAR Trust into a spot ETF on NYSE Arca, a move that echoes its Bitcoin ETF strategy with the originality of a well-worn joke.
  • The ETF, in a gesture of generosity, will accept creations/redemptions in NEAR or cash, and includes a staking clause-though whether regulators will allow this remains as uncertain as the weather in a British summer.
  • Move follows Bitwise’s single-token ETF push and a more permissive U.S. backdrop, potentially broadening regulated demand for NEAR and other altcoins-though one suspects the real beneficiaries are the lawyers drafting the paperwork.

Grayscale Investments, that stalwart of crypto conservatism, has filed a Form S-1 with the U.S. Securities and Exchange Commission to repackage the Grayscale Near Trust into a spot exchange-traded fund, the company announced. The filing represents another step in the firm’s effort to transition legacy crypto trusts into regulated, retail-accessible products-though one might argue it’s less a revolution and more a rebranding of the same old schemes.

Grayscale files for ETF to offer broader range of spot crypto ETFs

The filing indicates the regulatory environment may now support a wider range of spot crypto ETFs beyond Bitcoin and Ethereum, according to market observers-though one suspects their enthusiasm is fueled more by desperation than genuine optimism.

If approved, the Grayscale Near ETF would undergo structural changes to align with traditional ETF standards, according to the filing. The fund would uplist from over-the-counter markets to NYSE Arca. Authorized participants would create or redeem shares in baskets of 10,000 units using either NEAR (NEAR) tokens or cash-though the notion of “regulation” in this context remains as nebulous as ever.

The fund’s investment objective would be to passively track the market price of NEAR, minus fees and liabilities, according to the filing. The structure mirrors the framework used by approved spot Bitcoin ETFs-though one might question if this is a testament to ingenuity or a lack thereof.

The filing includes a staking clause that would allow the ETF to stake NEAR tokens through third-party providers, subject to regulatory approval. If permitted, staking rewards could provide incremental yield to the fund, introducing an income component rarely seen in traditional spot ETFs-though the term “rarely” seems to be used loosely here.

Grayscale has selected Coinbase for custody and prime brokerage, and Bank of New York Mellon as administrator and transfer agent, according to the filing. The partnerships are consistent with the infrastructure used across Grayscale’s existing ETF and trust products-though one wonders if this is a sign of reliability or mere convenience.

The Grayscale Near Trust, launched in November 2021, currently manages a relatively small amount of assets. The conversion reflects Grayscale’s strategy of repackaging existing trusts into more liquid, regulated vehicles, according to company statements-though the term “liquid” might be stretching the definition.

The filing follows a similar move by Bitwise, which submitted its own spot NEAR ETF application in May 2025. Grayscale has been expanding its ETF filings in early 2026 with applications tied to additional altcoins-though one suspects the real goal is to keep the legal team employed.

Analysts note the timing aligns with a more constructive regulatory backdrop under the current U.S. administration, increasing expectations that additional altcoin spot ETFs could gain approval over the coming year-though the phrase “constructive regulatory backdrop” sounds less like a policy and more like a euphemism for “we’re trying really hard to look busy.”

If approved, the Grayscale Near ETF would give traditional investors regulated exposure to the NEAR ecosystem and introduce staking-enabled design concepts into mainstream ETFs, according to industry analysts-though the term “mainstream” might be a bit of a stretch.

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2026-01-21 17:25