On May 6, 2025, Bitwise Asset Management made a historic move in the cryptocurrency market by submitting the first-ever Spot ETF application for NEAR Protocol to the U.S. Securities and Exchange Commission (SEC). This major step marks a turning point for altcoins, paving the way for them to enter regulated financial markets through legal and structured investment tools.

Key Details of Bitwise’s Proposed NEAR Spot ETF

What is a Spot ETF and Why Does It Matter for Altcoins?

A Spot Exchange-Traded Fund (ETF) is an investment fund traded on stock exchanges that directly tracks the price of an underlying asset—in this case, NEAR Protocol. Unlike futures-based ETFs, a spot ETF reflects the real-time value of the asset, offering more accurate market exposure.

🔍 Advantages of Spot ETFs in the Crypto Market:

• Traditional Market Access: Enables investors to trade cryptocurrencies through conventional brokerage accounts.
• Reduced Custody Risks: Eliminates the need for direct storage and security of tokens.
• Attracts Institutional Investors: Opens the door for pension funds, hedge funds, and large-scale investors to enter the altcoin market.
• Enhanced Liquidity and Transparency: Brings more regulated liquidity and clearer price discovery to the asset.

After the successful approval of Bitcoin and Ethereum ETFs in 2024, altcoins like NEAR are now setting their sights on regulated market entry. Bitwise’s bold move represents the growing demand for diversified cryptocurrency portfolios within the traditional financial system.

Impact Analysis on Markets, Policies, and Crypto Trends

The submission of a NEAR Spot ETF application by Bitwise signals a rising interest from institutional investors in expanding their cryptocurrency portfolios beyond just Bitcoin and Ethereum. This move is particularly significant for altcoins, which have so far been largely excluded from regulated investment products.

The choice of Coinbase Custody as the custodian guarantees institutional-grade security, ensuring a higher standard of asset protection and aligning with traditional financial regulations.

As a Layer-1 blockchain with high scalability, NEAR Protocol now steps into a new era of institutional acceptance, potentially mirroring the growth seen in Bitcoin and Ethereum following the launch of their own spot ETFs.

On a broader scale, Bitwise’s application could pressure the SEC to accelerate regulatory frameworks for altcoins like Solana, Cardano, Ripple, and others that have pending ETF applications from companies like Grayscale and BlackRock.

Read More: Bitcoin ETF Options Trading Begins: A New Era for Crypto Investment

Final Thoughts: Opportunities and Risks Ahead

🔹 Opportunities:

• Institutional capital inflow towards NEAR Protocol.
• Easier access for traditional investors to altcoins.
• Improved market liquidity and price stability for NEAR.
• Closing the gap between traditional finance and cryptocurrency markets.

🔸 Risks:

• SEC Rejection: The SEC may reject the application due to regulatory concerns or market structure issues.
• Uncertain Regulatory Landscape: The lack of clear guidelines for altcoin-based ETFs could delay approval.
• Short-term Volatility: Uncertainty or delays in the approval process may lead to temporary price drops.

Overall, Bitwise’s move to launch the first Spot ETF for NEAR is a major leap toward legitimizing altcoins in traditional financial markets. NEAR now stands at the forefront of the competition to secure a place in the ETF landscape, alongside major players like Bitcoin and Ethereum.

Source