Bitwise has filed an amended S-1 registration statement for its proposed NEAR ETF, updating the product structure to include staking. The amendment, filed with the SEC on July 2, signals that the asset manager is building yield-generating mechanics directly into its planned exchange-traded fund.
The update came via a Form S-1/A filing that revises Bitwise’s original NEAR ETF registration. Rather than proposing a straightforward spot-holding structure, the amended filing incorporates staking, meaning the fund could participate in NEAR Protocol’s proof-of-stake consensus mechanism and pass related rewards through to the product. For related coverage, see Fintech Revolution Summit Malaysia 2026 Opens Sponsorship, Speaking, and Exhibition Opportunities.
What the staking addition changes
Standard spot crypto ETF filings propose to hold the underlying digital asset in custody. By adding staking language, Bitwise is proposing that the fund’s NEAR holdings would actively participate in network validation, potentially generating yield for the product. For related coverage, see U.S. Charges Teen Scattered Spider Suspect in Crypto Ransom Scheme.
NEAR Protocol is a proof-of-stake blockchain, which means token holders can delegate their tokens to validators in exchange for staking rewards. For an ETF wrapper, this creates a fundamentally different product profile compared to a passive holding structure.
The move mirrors a broader pattern among crypto asset managers. Bitwise recently staked over 1 million HYPE tokens through its Hyperliquid ETF, suggesting the firm views staking as a core feature rather than an optional add-on for proof-of-stake ETF products.
Why staking raises the regulatory bar
Including staking in an ETF filing introduces operational and compliance questions that go beyond simple custody. The fund would need to manage validator selection, handle slashing risk, and account for staking reward distributions within a regulated fund structure.
U.S. regulators have historically treated staking with caution. The SEC’s scrutiny of staking services, including past enforcement actions against centralized staking programs, means Bitwise’s amended filing will likely face additional review on how staking mechanics interact with securities law.
Custody arrangements also become more complex when staked assets are involved. Unlike tokens sitting in cold storage, staked tokens are locked in smart contracts with unbonding periods, raising liquidity questions that institutional custodians are still working to solve.
What this signals for altcoin ETF competition
The amended filing, visible on the SEC’s EDGAR system, suggests Bitwise is positioning its NEAR product to stand apart from competitors that may file simpler spot-only structures. A staking-enabled ETF could offer investors yield on top of price exposure, a meaningful differentiator in a crowded filing landscape.
The broader crypto ETF market has expanded rapidly since spot Bitcoin products launched. Bitcoin ETFs have attracted significant inflows this year, and issuers are now racing to bring altcoin exposure to market with structures that go beyond basic spot holdings.
Whether the SEC will approve a staking-enabled fund remains an open question. The next steps to watch are any SEC comment letters on the amended filing and whether competing issuers follow Bitwise’s lead by adding staking provisions to their own altcoin ETF applications.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
