Bitwise Introduces First U.S. Spot NEAR ETF, Cutting Staking Rewards by One‑Third

How the Fee Split Affects Investors

A new exchange‑traded fund from Bitwise Investments has entered the U. S. market, offering investors direct exposure to the NEAR blockchain. The launch, which took place last week, marks the first spot ETF for the cryptocurrency in the United States. The product is designed to allow retail and institutional investors to gain NEAR exposure without owning the token directly.

The fund’s structure includes a unique fee model that reduces staking rewards by 33 percent. Bitwise and its affiliate Attestant, which will operate the validators, share the cut of the fund’s earnings. The remaining portion is allocated to the ETF’s management and to the underlying stakers. By absorbing a portion of the rewards, the ETF keeps costs lower for investors while still providing exposure to the network’s inflation‑adjusted token supply.

Bitwise’s strategy is to keep the ETF’s expense ratio competitive while ensuring that the staking rewards are distributed fairly. The 33‑percent fee is taken from the rewards that would otherwise accrue to token holders. This means that investors receive a smaller share of the staking income, but they also avoid the complexities of managing a wallet or running a validator node. Attestant, as a trusted partner, will handle the technical side of staking, ensuring that the validators remain secure and efficient.

Is This Model Sustainable for the NEAR Community?

The fee structure also aligns the interests of the ETF’s sponsors with those of the stakers. By taking a share of the rewards, Bitwise and Attestant are directly incentivized to maintain high validator performance. This alignment could help sustain the network’s security and overall health, benefiting all participants in the ecosystem.

The decision to capture a third of staking rewards has sparked debate among blockchain enthusiasts. Critics argue that the reduction could discourage long‑term holders and reduce the incentive to stake. Proponents counter that the ETF’s presence will bring institutional capital into the NEAR ecosystem, potentially offsetting any shortfall in staking income. The balance between attracting new investors and preserving community incentives remains a key question for the project’s future.

The launch of the NEAR ETF also raises regulatory considerations. The U. S. Securities and Exchange Commission has been cautious about approving crypto‑based funds, and Bitwise’s approach may set a precedent for how future ETFs handle staking rewards. Investors will be watching closely to see whether this model can be replicated for other blockchain assets.

What Does This Mean for NEAR’s Growth?

The ETF’s introduction is likely to increase liquidity for NEAR, making it easier for traders and institutions to enter and exit positions. Greater liquidity can lower volatility and improve price discovery. Additionally, the influx of capital may support development initiatives on the NEAR platform, such as new d Apps and infrastructure upgrades.

However, the fee structure could also influence staking participation. If the reduced rewards deter stakers, the network’s security could be impacted. Bitwise and Attestant will need to monitor staking activity closely and adjust the fee model if necessary to maintain a healthy validator ecosystem.

Frequently Asked Questions

What is the expense ratio of the new NEAR ETF? The fund’s expense ratio is currently set at 0.35 percent, which is competitive compared to other crypto ETFs.

Will the 33‑percent fee affect the ETF’s performance? The fee reduces the amount of staking rewards passed to investors, but it does not impact the underlying price of NEAR. The overall performance will still reflect the token’s market movements.

Can investors stake their own NEAR tokens outside of the ETF? Yes, individuals can stake NEAR directly by using the official wallet or other staking services. The ETF offers a separate, managed option for those who prefer a hands‑off approach.