Gray scale applies for NEAR ETF, will the 42nd largest market cap coin welcome institutional funds?

Grayscale has submitted an S-1 filing to the U.S. Securities and Exchange Commission (SEC) to convert the Grayscale Near Trust into an ETF. This is not a casual move by Grayscale—after successfully launching flagship ETF products for BTC, ETH, and others, Grayscale is now turning its attention to NEAR. When institutional funds begin to allocate to an ecosystem ranked 42nd by market capitalization, what does this really signify?

Why NEAR Catches Grayscale’s Attention

Solid Fundamentals of the Ecosystem

NEAR Protocol has been operational for over five years since its launch in August 2020. Currently, its market cap stands at $195 million, ranking 42nd in the crypto ecosystem. The circulating supply is 1,285,657,019 tokens, with active trading volume maintaining around $200 million. Although the short-term price faces pressure (an 18.69% decline over 7 days), this adjustment creates opportunities for institutional deployment.

Grayscale’s Multi-Asset Expansion Logic

Grayscale’s ETF expansion strategy has formed a clear framework. According to the latest data, Grayscale has been particularly active in ETH—by January 2026, Grayscale’s ETH Trust increased by $39.21 million, with AUM reaching $2.15 billion. This ongoing product expansion indicates that Grayscale is systematically building a multi-asset allocation framework for institutional investors. As a Tier 1 ecosystem blockchain, NEAR qualifies to be included in this framework.

Improving the Compliance Path

Converting a trust into an ETF is a crucial step for crypto assets to gain institutional acceptance. Compared to trust products, ETFs offer significant advantages in liquidity, tax efficiency, and compliance. This transformation signifies that NEAR is shifting from a “speculative asset” to a “core holding asset,” which is a substantial positive for long-term investors.

Market Status and Opportunities

NEAR is currently in a clear correction phase, but this also presents a window for institutional deployment. Grayscale’s application itself is a signal—large funds are optimistic about NEAR’s long-term value, rather than chasing the high.

Key Focus Areas Moving Forward

SEC Approval Progress

Submitting the S-1 is just the first step; SEC approval is the key. Historically, Grayscale’s ETF applications typically require several weeks to months for approval. During this period, market expectations may shift, impacting NEAR’s price.

Ecosystem Development Trends

The true value of NEAR depends on continuous ecosystem development. Grayscale’s ETF initiative will attract more institutional funds, but the ultimate retention of these funds depends on real-world application deployment and user growth within the NEAR ecosystem.

Market Liquidity Changes

Once NEAR ETF is approved and launched, a significant increase in liquidity is expected. This is positive for long-term holders, but in the short term, it may cause volatility due to institutional building positions.

Summary

Grayscale’s application for a NEAR ETF is not just a product expansion move; it also reflects institutional recognition of NEAR’s ecosystem value. The current price correction offers a better opportunity for strategic deployment. While SEC approval remains uncertain, this application itself sends a clear signal to the market: institutions are seriously considering this undervalued ecosystem. For investors looking to participate in NEAR’s long-term development, this could be a pivotal moment.