Grayscale NEAR ETF Explained: What the SEC Filing Means

This article was first published on The Bit Journal. Crypto asset manager Grayscale has taken another step toward expanding its exchange-traded product lineup, filing with the US Securities and Exchange Commission to convert its Grayscale NEAR Trust into an exchange-traded fund.

Grayscale NEAR Targets NYSE Arca

The proposed Grayscale NEAR Trust ETF would own NEAR Protocol tokens and would issue shares representing fractional ownership of the underlying digital asset, according to a preliminary prospectus filed on Tuesday. Grayscale will list the ETF on NYSE Arca, which has to be approved by regulators at SEC.

The filing is consistent with the Grayscale approach of releasing crypto investment products as private trusts and subsequently made them available to the public market before transforming them into exchange-traded products. This strategy has already been implemented to some of its offerings and Grayscale NEAR now seems to be in line.

Grayscale’s Track Record of Crypto ETF Approvals

In 2025, Grayscale was able to turn several of its crypto trusts into ETFs, including its Digital Large Cap Fund, and trusts based on Chainlink and XRP. Such approvals intensified anticipations that more single-asset products like Grayscale NEAR will be able to pursue the same way.

The asset manager also established some new Delaware statutory trusts based on potential products that track Binance Coin and Hyperliquid earlier this month which is a strong indication of its ongoing ETF pipeline. Discussing the overall trend, Bloomberg ETF analyst James Seyffart remarked on Tuesday that crypto ETF submissions are still going through the SEC desk indicating that institutional investor interest in regulated crypto exposure remains.

NEAR Trust Faces Pressure Amid Altcoin Decline

In September, the Grayscale NEAR Trust was issued and began to trade on the OTCQB market as GSNR. The product is currently operating with an assets under management of about 900,000 dollars. Its net asset value is at 2.19 in share terms, which represents an approximation of 45 percent since its inception as the altcoin markets have deteriorated over the last four months.

The blockchain network supporting the Grayscale NEAR Trust is called NEAR Protocol, an AI-native, high-performance platform that is meant to host decentralized applications and autonomous AI agents. In January 2022, the NEAR token hit an all-time high of slightly more than 20 in the midst of the AI-driven crypto boom.

NEAR Price Slumps Amid Shifting Market Cycle

Market conditions, however, have changed considerably since that time. NEAR is down approximately 92 percent of its all-time high and is trading at around $1.54 as the most recent market cycle has mostly supported Bitcoin and a few large-cap coins, whereas most altcoins including those related to artificial intelligence are still under pressure.

Even as token prices decreased, the most recent SEC filing by Grayscale highlights the ongoing effort of the company to introduce crypto assets in regulated investment funds. The conversion of Grayscale NEAR into an ETF shows increasing confidence that institutional demand of diversified crypto exposure will continue to grow, despite the expansion of market volatility.

Conclusion

If approved, the NEAR ETF would further expand Grayscale’s lineup of regulated crypto investment products, reinforcing its long-term strategy despite weak altcoin performance. The filing also indicates a longer-term institutional interest in compliant digital asset exposure, despite the entire market being volatile and changing investor preferences , still redefining the crypto space.

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Summary

• Grayscale seeks SEC approval to convert its NEAR Trust into an ETF.
• GSNR trades on OTCQB with $900,000 AUM, down 45% since launch.
• NEAR token remains under pressure, trading far below its 2022 peak.

Glossary of Key Terms

Grayscale:  Crypto asset manager offering regulated digital asset products.
Grayscale NEAR Trust:  Investment vehicle holding NEAR tokens for indirect exposure.
Grayscale NEAR ETF:  Proposed ETF converting the NEAR Trust for NYSE trading.
ETF (Exchange-Traded Fund):  Investment fund traded on stock exchanges.
SEC:  US regulator overseeing securities and ETF approvals.
NYSE Arca:  Exchange where ETFs like Grayscale NEAR could list.
NEAR Token (NEAR):  Native cryptocurrency of NEAR Protocol.
OTCQB Market:  US over-the-counter market for developing products and trusts.
GSNR: Ticker symbol for Grayscale NEAR Trust on OTCQB.

Frequently Asked Questions about Grayscale NEAR Trust

1: What is Grayscale doing with NEAR Trust?

Grayscale filed with the SEC to convert NEAR Trust into an ETF on NYSE Arca.

2: What does the NEAR Trust hold?

It holds NEAR Protocol tokens, offering fractional ownership to investors.

3: Where is the NEAR Trust traded?

It trades on OTCQB under the ticker GSNR with AUM of $900,000.

4: Why is this filing important?

It presents a continuing institutional appetite in regulated crypto products in spite of market weakness.

References

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