Grayscale Files S-1 for Near Protocol Spot ETF, Pushing Altcoin ETF Push
Grayscale Investments has filed an S-1 registration statement with the U.S. SEC to create a Grayscale Near Protocol Trust — a proposed spot ETF for NEAR. The filing, lodged in March 2025, formally starts the SEC review process and signals Grayscale’s strategic move beyond Bitcoin and Ethereum products. Key issues the SEC will scrutinize include market surveillance, liquidity, potential market manipulation, and custody solutions for NEAR tokens. NEAR (a proof-of-stake, layer-1 blockchain using Nightshade sharding) ranks among the top 30 cryptocurrencies by market cap and benefits from active developer support and documented tokenomics, factors Grayscale highlights to argue suitability for an ETF. The filing follows Grayscale’s legal precedent from 2023 that compelled SEC review of a Bitcoin ETF conversion and comes amid broader industry ETF activity — Bitcoin spot ETFs were approved in 2024 while Ethereum spot ETF applications remain under review. Market reaction to the filing included higher NEAR trading volume and price movement. Approval could open institutional access to altcoins, set a template for other layer-1 ETFs, and attract substantial institutional capital; rejection or delays would reinforce regulatory limits and push innovation toward alternative product structures or other jurisdictions. Timelines remain uncertain: SEC review can take months and may require amendments and surveillance-sharing agreements. This development is a significant regulatory test for altcoin spot ETFs and a potential catalyst for broader institutional adoption.
Bullish
The filing is bullish for NEAR and the broader altcoin ETF narrative because it signals institutional intent and advances the regulatory conversation around non-Bitcoin spot ETFs. Historically, major filings and regulatory progress (for example, the 2024 approvals of Bitcoin spot ETFs and Grayscale’s 2023 legal victory) have driven inflows and price appreciation for the underlying assets as institutions gain on-ramp mechanisms. Short-term, the announcement already increased NEAR trading volume and price volatility as traders priced in potential ETF flows and speculated on approval odds. Medium-term, approval would likely unlock sustained institutional demand, improve liquidity, and reduce the risk premium for NEAR relative to BTC/ETH, encouraging portfolio allocations to layer-1 tokens. Even a prolonged review or partial setbacks can be constructive: they clarify custody and surveillance requirements, allowing firms to build compliant infrastructure and prepare subsequent filings. Downside risks include SEC rejection or demonstrated market-manipulation concerns, which could cap upward momentum and increase regulatory uncertainty for other altcoin ETF bids. Overall, the net effect leans positive for NEAR and altcoin ETF prospects, making the development bullish for traders tracking institutional adoption and regulatory progress.