Grayscale Seeks Approval to Turn NEAR Trust Into ETF on NYSE Arca

Grayscale Pushes NEAR Toward ETF Status

Grayscale has taken another major step in expanding crypto access for traditional investors. The firm has filed to convert its NEAR Protocol Trust into a spot ETF that would trade on NYSE Arca, marking another move to bring altcoins into regulated markets. As ETFs continue reshaping how people enter crypto, the focus is shifting from complex self-custody toward familiar stock-style investing.

While Bitcoin and Ethereum led the ETF wave, attention is now turning to large altcoins with strong ecosystems. NEAR has built a name as a fast, low-cost, and developer-friendly blockchain focused on real-world use.

By choosing NEAR for its next trust-to-ETF conversion, Grayscale is signaling that crypto exposure is moving beyond store-of-value assets toward platforms people actually use.

What Grayscale Filed and What It Changes

Grayscale submitted a Form S-1 registration statement to the U.S. Securities and Exchange Commission to convert the Grayscale NEAR Protocol Trust into a spot ETF. If approved, the fund would trade on NYSE Arca, a major U.S. exchange known for listing ETFs.

Right now, the NEAR Trust trades on OTC Markets under the ticker GSNR. It manages about $900,000 in assets under management, which makes it a relatively small product. OTC products usually suffer from low trading volume, wide price gaps, and fewer participants.

Recent data shows the trust’s net asset value has fallen by around 45% in recent months, reflecting weakness across the altcoin market. This is one reason Grayscale wants to move it into an ETF structure.

NEAR Trust NAV per share has tanked 45% since September. Source: Grayscale

The shift from trust to ETF is not just cosmetic. Trusts often trade at premiums or discounts to their real asset value. ETFs are designed to stay close to their actual holdings through creation and redemption mechanisms. This makes pricing more accurate and fair for investors.

Grayscale has already made similar moves with other products, showing a clear strategy: take legacy crypto trusts and modernize them into ETF formats that fit traditional markets.

Why NEAR Was Chosen for the Next ETF Push

NEAR Protocol focuses on scalability, fast transactions, and a simple user experience. It is designed to support apps that normal people can use, not just crypto experts. This makes it attractive for long-term infrastructure growth rather than short-term speculation.

By choosing NEAR, Grayscale is signaling that altcoin ETFs will not be random. They will likely focus on platforms with real ecosystems, active developers, and practical use cases. NEAR supports decentralized apps, games, finance tools, and digital identity systems, which gives it broader relevance than purely speculative tokens.

Market interest in altcoins often rises and falls with the broader crypto market prices. But projects with working products tend to recover stronger after downturns. Grayscale’s filing suggests it sees NEAR as part of that more durable group of platforms.

This is not just about price potential. It is about long-term exposure to blockchain infrastructure that could support real digital services over the next decade.

What This Means for Investors and Market Access

An ETF makes crypto exposure simpler. Investors do not need to manage private keys or worry about sending tokens to the wrong address. They can buy shares through normal brokerage accounts, like stocks or gold ETFs.

For many people, managing a digital wallet still feels risky and technical. ETFs remove that barrier. They allow people to gain exposure to crypto assets without handling the technology directly. This is especially important for retirement accounts, institutions, and cautious retail investors.

ETFs also improve liquidity. More buyers and sellers mean better price discovery and easier entry and exit. This matters during volatile periods when thin markets can exaggerate price moves.

At the same time, ETFs change who controls access. Instead of users holding tokens directly, exposure becomes mediated through financial products. This is good for convenience, but it also shifts power back toward traditional financial systems. Investors must choose between simplicity and full control.

How This Fits Into the Current Crypto Cycle

The ETF era began with Bitcoin. When spot Bitcoin ETFs were approved, they changed how institutions interacted with crypto. Instead of worrying about custody and regulation, funds could gain exposure through regulated products.

Now this model is expanding. Altcoins are next in line, and NEAR is part of that wave. This shift reflects a maturing market where infrastructure matters more than hype.

Many investors still watch the BTC price as the main signal for market direction. But as the ecosystem grows, attention is spreading toward platforms that support real applications. ETFs tied to altcoins will likely grow when confidence in the broader market returns.

The filing also comes at a time when many altcoins are still recovering. The NEAR Trust itself has seen its value drop by around 45%, showing how hard the last market phase has been for non-Bitcoin assets. Grayscale’s move suggests it is preparing for the next cycle, not reacting to the last one.

This cycle is different from earlier ones. Instead of being driven only by retail speculation, it is increasingly shaped by institutions, regulations, and long-term product planning. Grayscale’s move fits perfectly into that evolution.

Why the NEAR ETF Matters for 2026

If approved, a NEAR ETF would give traditional investors easy access to an altcoin focused on speed and usability. This could bring new capital into the NEAR ecosystem. More funding usually means more development and stronger visibility. That helps the network grow beyond just crypto-native users.

Even though the current NEAR Trust is small at about $900,000 in assets, an ETF could change its scale. ETFs are easier to buy and sell than OTC trusts. This makes them more attractive to both retail and institutional investors. Over time, that could bring much more capital into NEAR.

There are still risks in the process. Approval is not guaranteed, and regulators may delay or reject it. But even filing shows a clear direction. Crypto is slowly becoming part of mainstream finance through regulated products.