Lede
Grayscale has officially filed with the United States Securities and Exchange Commission (SEC) to transform its NEAR Protocol Trust into an exchange-traded fund (ETF). This regulatory move was formalized through a preliminary prospectus filed on Tuesday, signaling the firm’s intention to broaden access to the NEAR token for a wider range of investors. The proposed ETF is slated for listing on the New York Stock Exchange (NYSE) Arca, continuing the company’s strategy of migrating its established investment products to major national exchanges.
Currently, the Grayscale NEAR Trust serves as a security that provides investors with shares representing fractional ownership of NEAR Protocol tokens. By transitioning to an ETF structure, Grayscale aims to streamline the investment process for those seeking exposure to the underlying asset within a regulated framework. This filing represents a key step in Grayscale’s ongoing effort to normalize digital asset investment products for institutional and retail audiences.
The NEAR Protocol itself is characterized as a high-performance, AI-native platform designed for decentralized applications. This latest regulatory submission follows a pattern of converting existing trusts into more accessible exchange-traded formats. If approved, the conversion would allow the fund to trade on one of the world’s most prominent exchanges, moving it from the secondary markets where it currently resides to the main stage of the New York Stock Exchange Arca.
Context
The filing for a NEAR ETF is consistent with Grayscale’s established operational lifecycle, which typically involves launching products as private trusts before moving them to over-the-counter (OTC) markets and eventually converting them into ETFs. This approach has been particularly active throughout 2025, a year in which Grayscale successfully converted several of its primary investment vehicles to provide better liquidity and transparency for investors.
Notable examples from this year include the conversion of the Digital Large Cap Fund, which holds a basket of various crypto assets, as well as the Chainlink (LINK) Trust and the XRP (XRP) Trust into exchange-traded funds. Beyond these specific conversions, the firm continues to expand its pipeline of potential products by establishing new legal structures in various jurisdictions.
Earlier this month, Grayscale formed new Delaware statutory trusts specifically tied to potential products linked to Binance Coin (BNB) and Hyperliquid (HYPE), indicating that more asset-specific products may be on the horizon. This systematic transition of products from private vehicles to public exchange-listed funds highlights a broader trend in the crypto asset management space. The NEAR Trust specifically began its journey toward this conversion earlier in the year when it entered secondary markets. By filing the preliminary prospectus for the NEAR Trust on Tuesday, Grayscale is moving another piece of its portfolio through this multi-stage regulatory and listing process.
Impact
The Grayscale NEAR Trust has been active in public markets for several months, having commenced trading under the ticker symbol GSNR on the OTCQB in September. The OTCQB is a leading secondary market in the United States operated by OTC Markets Group Inc. Currently, the trust manages approximately $900,000 in assets under management (AUM), representing a relatively specialized segment of Grayscale’s broader digital asset portfolio.
At present, the net asset value (NAV) per share for the trust stands at $2.19. However, the performance of the trust has faced significant challenges since it began trading on the OTC market. The NAV per share has declined by 45% since September, reflecting broader volatility and sharp downturns within the altcoin market over the last several months. This performance data provides critical context for the trust’s current standing as it seeks the transition to an ETF structure on the NYSE Arca.
The move to a more prominent exchange like NYSE Arca is often seen as a way to increase liquidity and accessibility for a broader base of investors, though the trust must first navigate the rigorous regulatory approval process with the SEC. Despite the relatively modest size of the current assets under management, which totals less than one million dollars, the conversion would place the NEAR-based product alongside Grayscale’s other institutional-grade ETF offerings that have already made the transition to major stock exchanges.
Outlook
The long-term performance of the NEAR Protocol token provides a backdrop for Grayscale’s latest filing. The NEAR token reached a significant milestone in January 2022, when prices surged to an all-time high of just over $20. This peak occurred during a period of intense market activity and heightened interest in technologies like decentralized platforms. However, the asset has experienced a substantial correction since that period.
Specifically, NEAR tokens have declined by 92% from their January 2022 all-time high, and they currently trade at approximately $1.54. This drastic reduction in value mirrors trends seen across much of the altcoin sector, where many assets have struggled to maintain their peak valuations from previous cycles. Despite the price volatility, NEAR Protocol remains positioned as a high-performance, AI-native platform designed for next-generation applications and agents.
The transition from an OTC-traded trust to an exchange-traded fund could potentially alter the market dynamics for the token by opening up the investment vehicle to a wider array of market participants who prefer traditional brokerage accounts and exchange-listed products. As Grayscale moves forward with the SEC, the performance of the underlying NEAR token will continue to be a primary factor for investors monitoring the trust’s net asset value and the eventual success of the proposed ETF listing on the New York Stock Exchange Arca.
About the Author
