Grayscale has filed a preliminary prospectus with the U.S. Securities and Exchange Commission to convert its NEAR Protocol Trust into an exchange-traded fund. The filing follows the firm’s established pattern of launching private trusts, moving them to over-the-counter markets, and eventually listing them as ETFs. The move comes as NEAR’s token price has fallen 92% from its all-time high, and the trust’s net asset value per share has dropped 45% since September.
At a Glance
- Grayscale files to convert NEAR Protocol Trust into an ETF.
- NEAR token peaked at just over $20 in January 2022, now $1.54.
- Trust’s assets under management: $900,000; NAV per share: $2.19.
- Bloomberg ETF specialist James Seyffart notes continued SEC filings in crypto ETP space.
Grayscale’s Strategic Move
Grayscale filed a preliminary prospectus on Tuesday for the Grayscale NEAR Trust, a security that offers shares representing fractional ownership in NEAR Protocol tokens (NEAR). The company intends to convert the existing Trust into an ETF to be listed on the New York Stock Exchange Arca. This conversion follows Grayscale’s pattern of launching products as private trusts, moving them to OTC markets, and eventually converting them to exchange-traded products.
In 2025, Grayscale converted its crypto asset basket Digital Large Cap Fund, its Chainlink (LINK) Trust, and its XRP (XRP) Trust into ETFs. Earlier this month, Grayscale formed new Delaware statutory trusts tied to potential products linked to Binance Coin (BNB) and Hyperliquid (HYPE). These moves illustrate the firm’s strategy of expanding its ETF offerings across a broad range of digital assets.
NEAR Protocol Trust Details
The NEAR Trust began trading under the symbol GSNR on OTCQB, a leading secondary U.S. market operated by OTC Markets Group Inc., in September. In its current form, it has $900,000 in assets under management. It has a net asset value per share of $2.19, down 45% from when it started trading as altcoin markets have tanked over the past four months.
The trust’s NAV per share has tanked 45% since September, reflecting the broader decline in the NEAR token price. The drop in NAV mirrors the steep fall in the token’s market value, which has fallen 92% from its peak.
Market Context and Analyst Commentary
Bloomberg ETF specialist James Seyffart observed, “Crypto ETP filings continue to come across the SEC’s desk,” highlighting the ongoing interest in crypto-based exchange-traded products. His comment comes amid a wave of new filings and conversions by major asset managers.
Grayscale’s filing aligns with a broader trend of crypto-asset managers converting private trusts into ETFs to increase liquidity and broaden investor access. The company’s recent conversions of the Digital Large Cap Fund, Chainlink Trust, and XRP Trust into ETFs set a precedent for the NEAR conversion.
The NEAR token has experienced a dramatic decline in value, slumping 92% in two years. This steep drop underscores the volatility of the crypto market and the challenges faced by asset managers in maintaining investor confidence.
NEAR Token Performance
NEAR token prices surged to an all-time high of just over $20 in January 2022 during the AI boom. However, they have tanked 92% since then to currently trade at $1.54 as the altcoin season bypassed the current market cycle, and AI fever has faded.
The sharp decline in the token’s price has had a cascading effect on the trust’s NAV, contributing to the 45% drop in the trust’s net asset value per share. Investors now face a more uncertain outlook for NEAR and similar assets.
The current market conditions suggest that the token’s price may stabilize or potentially recover as the AI boom subsides and new use cases emerge for the NEAR Protocol.
Implications for Investors
The conversion to an ETF could increase liquidity and accessibility for NEAR token holders, allowing them to trade shares on a regulated exchange. However, the steep decline in the token’s price and the trust’s NAV may deter some investors.
Existing holders of the NEAR Trust may need to reassess their positions in light of the new ETF structure and the broader market environment. The conversion could also attract new investors who prefer the regulatory oversight of an ETF.
Given the volatile nature of the crypto market, investors should exercise caution and consider the potential risks associated with the NEAR token and the newly formed ETF.
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