Bitwise Registers NEAR ETF, NEAR Price Jumps 4%

Bitwise, a prominent crypto asset manager, has registered a NEAR ETF in Delaware, indicating a potential move towards mainstream adoption of the NEAR Protocol. The NEAR Protocol is a Layer 1 blockchain focused on scalability and user-friendly decentralized applications (dApps). This registration is a crucial preliminary step in the process of applying for an ETF with the US Securities and Exchange Commission (SEC).

Following the announcement, NEAR’s price rose by approximately 4%, reaching slightly above $2.600. The NEAR Protocol is backed by the NEAR Foundation and has a history of significant ecosystem funding. For instance, $800 million was allocated in 2021 to support growth, highlighting the ambition to compete with blockchains like Ethereum.

For Bitwise, this registration is just an administrative step that sets the groundwork for a potential ETF. To actually launch the ETF, Bitwise needs to file a formal application with the SEC, which would include information about the ETF, its investment objectives, fee structure, risks, and how it will track NEAR’s performance. Delaware is a popular state for business registrations due to its business-friendly laws, tax advantages, and simplified processes.

If everything is successfully completed, including the SEC approval, a NEAR ETF would likely open a regulated and easy way for institutional investors to invest in NEAR. As a result, a potential boost in its demand may happen. At the moment, Bitwise must file for approval with the SEC and wait for the review. If it gets a green light, only then can the company launch the ETF on a public exchange.

NEAR Protocol is attracting attention for its sharding-based architecture, low transaction fees, and developer-friendly environment. It launched in April 2020, and its main purpose is to support dApps and enable an open web by making blockchain more accessible to developers and end users. NEAR uses a unique version of sharding called Nightshade, which allows it to process many transactions in parallel across different shards. Generally speaking, NEAR Protocol is a forward-looking blockchain trying to solve Web3’s biggest UX and scalability problems without compromising decentralization. It has been gaining momentum, and news like Bitwise’s NEAR ETF helps push it toward being seen as a legitimate Ethereum alternative.