Bitwise Launches NEAR Staking ETP on Deutsche Börse Xetra

Bitwise has launched a new exchange-traded product on the Deutsche Börse Xetra, offering investors exposure to the AI-based blockchain NEAR with staking benefits. The NEAR Staking ETP, marked with the ticker NEAR and ISIN DE000A4A5GV2, is fully backed and issued in Germany. This ETP provides exposure to crypto assets and staking returns with a low cost of ownership, designed to accumulate daily staking yields.

The NEAR Staking ETP is the fourth Bitwise ETP to debut in Europe, expanding the platform’s European Total Return product suite, which includes the established Bitwise Ethereum (ETH) Staking ETP. However, the Ethereum Staking ETP has faced delays in its U.S. launch due to an extended review by the U.S. Securities and Exchange Commission.

For investors, the NEAR Staking ETP offers exposure to staking rewards without the need to manage the technical details of staking or token custody. This means investors can avoid holding NEAR directly or using third-party wallets or validators. The ETP provides daily liquidity, as it is traded on regulated stock exchanges without lock-up periods or manual delegation. The underlying NEAR tokens are held in cold storage by an institutional custodian.

Bradley Duke, Head of Europe at Bitwise, expressed excitement about the launch of the new ETP in partnership with NEAR, highlighting that the ETP gives investors exposure to price movements in the NEAR token as well as compounded returns from staking rewards.

The NEAR Protocol is a Layer 1 blockchain designed to make AI and other technological advancements accessible and useful for on-chain users. Established in 2020, NEAR addresses common blockchain challenges using sharding technology, enabling the network to process many transactions simultaneously. This technology solves problems of slow transaction processing and high costs. Developers can benefit from NEAR’s customizable smart contracts, supporting multichain financial applications using secure cryptographic tools without the need for bridges or wrapped tokens.

The Bitwise NEAR Staking ETP is benchmarked against the CF NEAR Staked Return Index, net of fees and expenses. The ETP's NAV U.S. dollar value is determined at 4.00 pm CET of each business day, representing the value of one unit. It is calculated using the relevant spot price of the underlying digital asset, though the value may not necessarily match the ETP's intraday trading price.

Staking NEAR, the native token of the NEAR Protocol blockchain, allows token holders to support the network’s security and performance while potentially earning additional income. By staking NEAR, investors contribute to transaction validation and block production, with rewards issued in NEAR tokens. These rewards are accumulated within the ETP daily, enhancing its performance over time.

The ETP offers a streamlined way for investors to gain exposure to staking rewards without managing the technical aspects of staking or token custody directly. It provides daily liquidity, as it is traded on regulated stock exchanges and involves no lock-up periods or manual delegation. The underlying NEAR tokens are held in secure cold storage by a professional institutional custodian, providing robust asset protection.

Investors receive 67% of the staking rewards generated by staking the ETP’s underlying NEAR tokens, while the issuer retains 33% of total staking rewards as a Staking Service Fee to cover operational costs. The Net Staking Reward reflects the staking return after all applicable fees have been deducted, expressed in annualized, non-compounded percentage terms. This figure represents the additional return the ETP is expected to deliver on top of token performance. The Net Staking Rewards are accumulated daily and automatically reinvested into the ETP to enhance performance, increasing the cryptocurrency entitlement per ETP unit at the end of each trading day.

The ETP is 100% physically backed by NEAR tokens and replicates the performance of the underlying, less fees. The underlying NEAR tokens are staked, generating additional returns for investors in accordance with the NEAR staking market rate, less staking fees and TER. The staking provider used by Bitwise for the Bitwise NEAR Staking ETP has the ability to stake directly from the ETP’s custody wallet, ensuring that the crypto assets’ private keys never leave custody during staking and remain in cold storage. Bitwise partners with leading providers of digital asset custody, including BitGo Europe GmbH, a key entity within the BitGo group, which has been a pioneer in digital asset custody since 2013. BitGo introduced multi-signature security and has since become a recognized leader in delivering institutional-grade custody solutions for digital assets.

Investors should be aware that cryptocurrencies and products linked to cryptocurrencies are highly volatile and involve numerous risks, including market, price, currency, liquidity, operational, legal, and regulatory risks. Exchange-traded products do not offer a fixed income or match precisely the performance of the underlying cryptocurrency. Investment in cryptocurrencies and products linked to cryptocurrencies are only suitable for experienced investors, and independent advice should be sought prior to investing.