Grayscale Applies to Convert NEAR Trust to ETF on NYSE Arca

Grayscale Investments, a leading crypto asset manager, has filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Near Trust into a spot exchange-traded fund (ETF) focused on the NEAR Protocol token. This move, filed on January 20, 2026, aims to provide investors with a regulated avenue to track NEAR’s price movements without the complexities of managing digital wallets.

Why It Matters: Implications for the Crypto Market

The conversion of the Grayscale Near Trust into an ETF is significant for several reasons. Firstly, it aligns with Grayscale’s strategy of transforming closed-end trusts into accessible ETFs, a move facilitated by the SEC’s new generic listing rules introduced in October 2025. These rules have streamlined the approval process for altcoin-based ETFs, potentially unlocking billions in institutional capital. This development could enhance NEAR’s liquidity and visibility, positioning it as a key player in AI-driven blockchain applications.

How Does NEAR Protocol Fit In?

NEAR Protocol, a fast Layer-1 blockchain, is designed for decentralized apps (dApps) and competes with networks like Ethereum and Polkadot. With features such as readable account names and seamless interactions with smart contracts, NEAR has amassed nearly $135 million in locked value. Its 2026 roadmap emphasizes AI integration, with recent launches like the NEAR AI Cloud and Private Chat technologies. This strategic focus on AI could drive further adoption and innovation within the blockchain space.

What’s Next: Future Outlook and Potential Risks

Grayscale’s move into NEAR follows similar strategies with other cryptocurrencies, such as Chainlink and XRP. As the SEC reviews the application, the outcome could set a precedent for future altcoin ETFs. If approved, the NEAR ETF would transition from OTCQB trading under the symbol GSNR to the NYSE Arca exchange, potentially attracting more institutional investors. However, market volatility and regulatory uncertainties remain potential risks for investors.