A new era for altcoins in the U.S.: NEAR fund goes live
Asset management firm Bitwise has opened its fund that directly invests in NEAR assets for trading on NYSE Arca in the U.S. The fund, which trades under the ticker NRR, offers investors the ability to invest in NEAR without using a crypto wallet and to earn staking income from the assets in the fund.
Asset management firm Bitwise has launched its new fund that invests directly in NEAR assets in the United States. The Bitwise NEAR ETF began trading on the New York Stock Exchange's Arca platform under the ticker NRR on September 29.
The fund offers investors the opportunity to invest in this asset without buying NEAR tokens from cryptocurrency exchanges. Investors can buy and sell fund shares through traditional brokerage accounts.
Annual Management Fee 0.75%
The annual management fee for the fund that holds NEAR directly has been set at 0.75%. Thus, investors can invest in NEAR's price movements through the fund without having to store their tokens in personal wallets or manage wallet custody.
NEAR Protocol operates as a blockchain network that enables the development of decentralized applications.
Staking Revenue Will Reflect in the Fund's Value
Bitwise plans to use a portion of the NEAR assets held in the fund in the staking process. The rewards earned from this process, which contributes to the network's security and transaction validation, will be included in the fund's assets.
Instead of distributing staking income directly in cash to investors, it is planned to reflect it in the fund's net asset value per share.
According to the company's statement, about 67% of staking rewards will be retained in the fund. The remaining 33% will be used for expenses related to the staking service. This deduction will be applied separately from the 0.75% annual management fee.
Staking Returns Are Not Fixed
Bitwise announced that, as of September 25, the annualized staking reward rate on the NEAR network is about 5%. However, it is emphasized that this rate does not represent the net return that a fund investor will earn.
While noting that staking rewards may change over time, it is pointed out that potential declines in NEAR's price could exceed the income earned through staking.
It is also noted that because the tokens earmarked for staking can only be reused for a limited time, the fund may experience delays in redemption transactions. Bitwise cites the loss of staking rewards and operational problems as risks of the fund.
Bitwise's focus is on the AI economy.
Behind Bitwise's interest in NEAR lies the expectation that AI systems will be able to make payments and perform various transactions on behalf of users in the future.
The company's Investment Director Matt Hougan said that such systems will need infrastructures capable of rapid transactions and not tied to a single custodian.
Hougan cited NEAR Intents, which facilitates transactions across different blockchain networks, as an example of this approach. According to Bitwise's data, NEAR Intents' total transaction volume rose from below $1 billion a year ago to over $32 billion.
Bitwise Adds a New Crypto Fund.
Bitwise also has a NEAR staking product in Europe. NRR, which began trading in the United States, joined the company's single-crypto-asset funds such as Bitcoin, Ethereum, Solana, XRP, and Hyperliquid.
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