Bitwise Asset Management has launched the Bitwise NEAR ETF under the ticker NRR, making it the first U.S. spot NEAR exchange-traded product. The fund began trading on NYSE Arca on September 29 and holds NEAR directly while intending to stake its holdings in-house.
The fund charges a 0.75% annual management fee. Staking rewards earned by the trust accrue to shareholders through the fund’s net asset value, while staking-related expenses are allocated from 33% of the rewards generated.
The launch follows the SEC’s September 24 effectiveness of the fund’s registration statement and NYSE Arca’s approval of its listing application. The SEC filing shows that the exchange approved the listing, while the fund’s registration statement subsequently became effective.
NRR combines spot NEAR exposure with staking
According to the final prospectus, unlike a fund based on NEAR futures or other derivatives, NRR is structured to hold the underlying NEAR tokens. Its primary objective is to provide exposure to the value of NEAR held by the trust, while its secondary objective is to earn additional NEAR through staking.
The fund uses the CME CF NEAR Protocol–Dollar Reference Rate – New York Variant to determine its net asset value. The benchmark is calculated by CF Benchmarks using trading activity from major NEAR platforms.
Bitwise said it intends to stake the fund’s NEAR through its institutional staking operation. The company cited an annualized NEAR staking reward rate of about 5% as of September 25, although it stressed that the rate is not a measure of the fund’s performance and can change.
The staking structure is subject to risks including slashing, operational failures, and potential delays in meeting redemption orders if assets are committed to staking.
Staking rewards are split between the trust and service costs
Under the fund structure, about 67% of generated staking rewards are retained by the trust after the 33% allocation for staking-related expenses.
The staking arrangement is separate from NRR’s 0.75% annual management fee. The management fee is based on the fund’s NEAR holdings and is paid from the trust’s assets. Staking rewards are not guaranteed. The amount earned can vary with network conditions and other factors affecting NEAR staking.
Coinbase Custody to hold NEAR
Coinbase Custody Trust Company serves as custodian for the fund’s NEAR holdings, according to the prospectus. BNY Mellon provides cash and administrative services for the trust.
The fund’s creation and redemption process allows authorized participants to transact in cash or NEAR, with each creation or redemption basket consisting of 10,000 shares. The structure is designed to allow the trust to maintain direct exposure to NEAR rather than through derivative contracts.
The fund initially had eight seed shares valued at $25 each, or $200 in net assets, as of July 28. Bitwise Investment Manager was also expected to purchase 20,000 shares for $500,000 as an initial seed basket ahead of the listing.
NEAR trades near $5 as NRR starts
According to data from CoinGecko (on September 29 at 15:50 UTC), NEAR was trading near $5 around the ETF’s debut, up nearly 1.7% in the past 24 hours. The token’s 24-hour range was about $4.55 to $5.04, while its market capitalization stood at roughly $6.5 billion and 24-hour trading volume was about $1.38 billion.
Bitwise has highlighted NEAR Intents as a major part of the network’s activity. The company said the protocol had processed more than $32 billion in volume, up from less than $1 billion a year earlier. These figures are Bitwise’s disclosures and are not a measure of NRR’s performance.
The NEAR Protocol itself typically finalizes transactions in about 1.2 seconds, according to Bitwise, while transaction fees remain relatively low.
NRR adds to Bitwise’s single-asset crypto products
The launch extends Bitwise’s U.S. lineup of single-asset crypto exchange-traded products beyond Bitcoin, Ethereum, Solana, XRP, and Hyperliquid.
NRR is not registered as an investment company under the Investment Company Act of 1940, meaning it does not have the same regulatory protections as mutual funds and ETFs registered under that law. The fund also carries risks associated with NEAR’s price volatility, liquidity, blockchain infrastructure, and staking operations.
The launch gives U.S. investors a brokerage-traded vehicle for direct NEAR exposure while incorporating staking into the fund’s structure. The staking rewards accrue to the trust rather than being paid separately as a cash distribution to shareholders.
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