**Grayscale Aims to Turn Its NEAR Trust into a Spot ETF on NYSE Arca**

Grayscale, one of the biggest players in the crypto asset management space, is planning to turn its current NEAR Trust (GSNR) into a spot ETF that would trade on the NYSE Arca. This move could give investors more regulated access to NEAR Protocol, a layer-one blockchain project. Right now, the trust is already active, trading over-the-counter with about $900,000 in assets and a net asset value (NAV) of $2.19 per share.

**What’s Changing with the Grayscale NEAR Trust ETF Plan**

The Grayscale NEAR Trust currently trades on the OTCQB market, which is less accessible for many investors. Grayscale wants to shift this product onto NYSE Arca as a fully regulated spot ETF. If approved, the ETF will continue under the GSNR ticker. Importantly, it will directly hold NEAR tokens—no futures, no leverage, and no derivatives—keeping it simple and closely tied to the real market price of NEAR.

To make this transition happen smoothly, Grayscale is working with some well-known partners. Coinbase Custody will safely store the NEAR tokens. Coinbase will also act as the prime broker, helping with buying and selling. The Bank of New York Mellon will handle admin tasks like share transfers and fund accounting. This setup is designed to bring traditional financial structure to crypto investing.

**Grayscale Expands Its Crypto ETF Portfolio**

This NEAR ETF push is part of a larger strategy by Grayscale. The company already runs nine crypto ETFs and has turned several of its older products into exchange-traded funds. These include ETFs for Bitcoin, Ethereum, Chainlink, and XRP. The NEAR ETF shows that Grayscale sees long-term value in offering regulated access to more blockchains.

Grayscale isn’t stopping at NEAR. It has also created trusts for BNB and Hyperliquid and is preparing to launch ETFs for Hedera, Avalanche, and Bittensor. These are still in early stages but signal the company’s plan to offer a wide range of crypto ETFs as the market and regulations evolve.

**NEAR Token Price Struggles Despite ETF News**

Despite this big news from Grayscale, NEAR’s price hasn’t jumped. In fact, it dropped around 1.76% in the last 24 hours to $1.54 and has fallen over 14% in the past week. This matches a broader decline across the crypto market.

This kind of price action shows that investors are becoming more cautious. Simply filing for an ETF isn’t enough to drive prices up anymore—people want to see actual approvals and listings before reacting.

Still, if the ETF is approved and starts trading on NYSE Arca, it could open up NEAR to a whole new group of investors, including financial advisors, retirement funds, and institutions that don’t want to deal with direct crypto custody.

**Understanding the ETF Approval Process and Risks**

To launch this ETF, Grayscale has filed Form S-1 with the SEC. This kicks off a two-part process: first, getting the registration approved so they can legally issue shares; second, getting NYSE Arca’s rule change approved so the ETF can list and trade on the exchange.

One of the most important things in the filing is that this ETF will directly hold NEAR tokens—no synthetic products or derivatives. That reduces risk for investors and keeps performance closely tied to real market prices.

However, like all crypto investments, this ETF comes with risks:

– **Price Volatility**: NEAR’s price can swing wildly based on market trends or news.
– **Regulatory Changes**: If laws change around crypto or how NEAR is classified, that could impact the fund.
– **Custody & Security Risks**: Even with Coinbase Custody handling storage, there’s always some risk of hacks or operational issues.
– **Liquidity Issues**: In times of market stress, it might be harder for the ETF to create or redeem shares without affecting prices.
– **No Yield**: This ETF won’t participate in staking or lending NEAR tokens, so investors won’t earn rewards even though they face price risk.

This product is aimed at people who want easy access to NEAR through their brokerage accounts without managing wallets or private keys. But they’ll pay management fees for that convenience—and those fees could eat into returns if NEAR’s performance is slow.

**Facing Off with Bitwise and Other Competitors**

Grayscale isn’t alone in chasing a NEAR-based ETF. Bitwise filed for its own NEAR ETF back in May 2025, setting up direct competition if both get approved. Investors will likely compare them based on things like fees, trading volume, and how closely they track NEAR’s price.

Grayscale does have an edge: it’s a well-known name with existing ETFs and experience converting trust products into exchange-traded funds. However, newer competitors like Bitwise sometimes offer lower fees to attract early interest.

For NEAR Protocol itself, having a major ETF listed could raise its profile among mainstream investors and analysts. It might also bring in more passive investment from funds that track crypto indices or allocate small amounts to digital assets.

On the flip side, ETFs can reduce direct user engagement with the network—fewer people might stake tokens or use decentralized apps if they just hold shares through traditional brokerages.

**Big Picture: What This Means for Crypto ETFs**

This filing is part of a bigger trend: asset managers are pushing beyond just Bitcoin and Ethereum ETFs into more altcoins like NEAR, Hedera, Avalanche, and others. Each new application gives insight into how regulators are thinking about these newer assets and whether they’re comfortable allowing broader crypto exposure through ETFs.

If approved, the Grayscale Near Trust ETF could help validate Grayscale’s strategy of building a full shelf of crypto ETFs—not just for top-tier tokens but for a wide range of blockchain networks.

**Conclusion**

The Grayscale Near Trust ETF proposal represents another step toward making crypto investing easier for traditional investors. By converting its small but operational NEAR trust into a spot ETF on NYSE Arca—with major partners like Coinbase and BNY Mellon—Grayscale hopes to bring more legitimacy and accessibility to NEAR Protocol exposure.

While approval isn’t guaranteed, success would support broader adoption of altcoin ETFs in the U.S. If rejected, it could slow similar plans across the industry—but either way, this filing signals that crypto ETFs are expanding beyond Bitcoin and Ethereum into a more diverse market.