Key highlights:
Bitwise launched the first NEAR ETF on Tuesday, giving U.S. investors exposure to an AI-driven layer-1 blockchain. The fund, called the Bitwise NEAR ETF, is now trading on NYSE Arca under the ticker NRR.
Features of the first NEAR ETF fund
NRR carries a 0.75% annual management fee, meaning an investor investing $1,000 would pay about $7.5 a year to hold the fund. Bitwise shared that it plans to stake a substantial portion of the NEAR tokens held in the fund.
The asset manager added that its in-house team will handle this staking, targeting rewards of around 5% to investors.
Bitwise also highlighted a couple of risks to note. Its disclosure showed that staking rewards can change over time and carry a “slashing” risk, a penalty applied when a validator breaks network rules.
Since the fund holds only one asset, Bitwise also warned investors that they could lose a significant portion, or even all, of their investment.
NRR now joins the manager’s lineup of single-asset crypto ETFs, which includes funds tracking Bitcoin, Ethereum, Hyperliquid Solana, and XRP.
Bitwise bets on NEAR and its AI agents
Bitwise’s pitch for the fund was mostly attributed to the protocol’s AI agents. NEAR has spent the past years pivoting its focus to this technology. The firm launched an AI research lab back in May 2024, led by Polosukhin alongside co-founder Alex Skidanov. Bitwise CEO Hunter Horsley provided more details on why the firm is betting on its AI technology.
“We’re moving toward a world in which AI agents increasingly act on our behalf, coordinate with one another, and participate in the economy,” he said. “We believe this shift, to an agentic economy where more and more happens through AI agents, could unlock an enormous new frontier for the global economy. NEAR is building a platform for that future.”
A big part of this AI plan is thanks to the NEAR Intents product. This service lets users and AI agents request a transaction while independent third-party “solvers” compete to carry it out across different blockchains. This system has now processed more than $32 billion in total volume, up sharply from less than $1 billion just a year earlier, according to Bitwise.
In July, the protocol launched its Confidential Intents, a privacy-linked infrastructure upgrade, which also drove immense activity from investors.
Bitwise’s CIO, Matt Hougan, also shared his thoughts, saying that the firm has seen early signs of AI agents using the network. He also added that solving cross-chain complexity has been a pain point in crypto for a while.
“Bridging and cross-chain abstraction has been a challenge for crypto for nearly a decade, and a lot of people have lost both time and money trying to navigate that space,” he said.
The system’s role in moving funds between chains was tested recently in an unexpected way. NEAR Intents said it blocked $50 million in attempted transfers linked to the $387.5 million Bitget hack.
The new fund starts with a bang
NRR had a good start in the market, recording $35.5 million on Tuesday, according to SoSoValue. It also saw volume of $15.1 million and an AUM of $36 million.
This comes as the token itself continues its remarkable run. NEAR’s price has climbed 180% over the past month, trading around $5.3. The token is still down about 78% from its all-time high of around $19.
Source:: First US Spot NEAR ETF Launches as Bitwise Debuts New Fund