The push to give Wall Street direct access to Layer-1 blockchains is growing.
After a year of large ETF applications linked to Solana [SOL] and Ripple [XRP]Grayscale Investments has now turned its attention to the NEAR protocol [NEAR].
In a form S-1 filed Together with the U.S. Securities and Exchange Commission (SEC), Grayscale announced plans on January 20 to convert its existing Near Trust into a spot ETF.
The proposed product will be renamed the Grayscale Near Trust ETF, signaling that NEAR is moving beyond a developer-focused project and into the institutional spotlight.
Details of Grayscale Near Trust ETF
According to the filing, Grayscale plans to upgrade the Grayscale Near Trust (GSNR) from the OTCQB over-the-counter market to the NYSE Arca exchange.
The company is following its standard strategy, starting with private placements for accredited investors, then moving to public trading and ultimately pursuing full ETF approval.
Post-conversion, the ETF will give investors direct exposure to NEAR, the native token of the Near Protocol, through regular brokerage accounts.
This structure eliminates many of the problems associated with private trusts, including low liquidity and tracking errors. That said, Grayscale built the proposed ETF with support from major institutional partners.
Coinbase Custody Trust Company will protect the NEAR tokens, while BNY Mellon will manage the administration and transfer services.
Additional features
The filing also highlights staking as a key feature of the proposed ETF. Unlike Bitcoin [BTC] ETFs, this fund plans to deploy NEAR tokens on the network.
This approach could allow the fund to earn staking rewards that can be shared with investors, subject to regulatory approval.
This development is because the price of NEAR is under pressure in the short term. At the time of writing, the token was trading around $1.53, down 1.84% in the past 24 hours. CoinMarketCap.
However, the decline appears to be related to broader market weakness caused by President Trump’s tariff actions on Greenland and several European countries.
At the same time, the altcoin ETF market is becoming increasingly divided.
Analysis of Altcoin ETFs
Facts from SoSoValue shows mixed institutional flows. Solana and Chainlink [LINK] saw small inflows of $3.08 million and $4.05 million.
Meanwhile, Ethereum [ETH] saw heavy outflows of almost $230 million, followed by XRP of $53.32 million and smaller exits from Dogecoin [DOGE].
This suggests that investors are actively shifting capital rather than abandoning crypto altogether.
It goes without saying that NEAR is not alone in this race. Recently, the Bitwise Chainlink ETF was also launched on NYSE Arca on January 14.
Overall, the burgeoning ETF space suggests that there won’t be a single dominant winner in 2026. Instead, it can be formed by a broader group of institutional-grade altcoins.
Final thoughts
- Grayscale’s move makes it easier for traditional investors to access NEAR without having to deal with wallets or private trusts.
- For NEAR, this submission is a starting point and not the finish line, with implementation now becoming the key focus.