Bitwise's spot NEAR ETF began trading on NYSE Arca on Tuesday, marking the first US exchange-traded fund to hold the AI-focused token directly. The fund gives ordinary brokerage accounts a way to own NEAR and collect staking rewards without setting up a crypto wallet.
The launch lands after a sharp run for NEAR, which has nearly tripled since August. Bitwise is betting that investors who want exposure to AI-related crypto assets would rather buy a ticker than manage private keys.
What the fund actually holds
The Bitwise NEAR ETF holds spot NEAR, not futures or derivatives. That distinction matters: spot ETFs track the live market price of the underlying asset, and the fund's shares are bought and sold through standard brokerage platforms. The ETF also passes through staking rewards, meaning shareholders get a cut of the network's validator income on top of price movement.
Staking rewards are paid in NEAR. So the fund's returns depend on both the token's price and the yield the network generates from validators. That combination is unusual among US-listed crypto ETFs, which mostly track bitcoin or ether without a staking component.
Why NEAR, and why now
NEAR is marketed as an AI-focused token, and that label has driven interest over the past few months. The token's near-tripling since August reflects that appetite. Bitwise is the first issuer to get a US spot NEAR ETF to market, giving it a head start on any competitor that follows.
The fund's NYSE Arca listing puts it alongside other crypto ETFs at a major exchange. It also gives institutional and retail investors a regulated wrapper for a token that would otherwise require a crypto exchange account.
The staking wrinkle
Staking inside an ETF isn't automatic. The fund has to run validators or delegate to them, and the rewards it earns depend on network conditions. If the staking yield falls, the ETF's edge over simply holding NEAR shrinks. Bitwise hasn't disclosed a target yield, and the actual return will vary with the network.
There's also the question of how the fund handles the token's volatility. NEAR has moved sharply in both directions this year, and an ETF that holds spot tokens will reflect those swings in its share price. That's the trade-off for getting staking rewards in the same product.
What to watch
The ETF's first few weeks of trading will show whether brokerage investors actually want NEAR exposure in this form. Bitwise will report holdings and staking activity as required. The next data point is the fund's initial inflows and how its share price tracks the underlying token. For now, the product is live, and the market will decide if the AI-token ETF pitch holds up.
