Bitwise names counterparties and seed plan for proposed NEAR ETF

Bitwise identified Cumberland DRW and Nonco as approved trading counterparties for its proposed NEAR exchange-traded product, filling an operational gap that remained blank in the previous registration statement.

An amended Form S-1 filed with the Securities and Exchange Commission on Friday, Aug. 28, also says a Bitwise affiliate expects to purchase 20,000 seed shares for $500,000. The filing assigns those shares a planned price of $25 each. The corresponding fields were blank in Bitwise’s Aug. 3 amendment.

The changes matter because they identify how the trust expects to acquire and dispose of its underlying token when investors create or redeem shares for cash. They do not establish that the SEC has declared the registration effective, that shares have begun trading or that either counterparty must accept a particular transaction.

Most token trades would go through two dealers

The proposed Bitwise NEAR ETF would hold NEAR directly and anticipates listing on NYSE Arca under the ticker NRR. Its primary objective would be exposure to the value of its NEAR holdings after expenses. Staking some or all eligible holdings to generate additional NEAR would be a secondary objective.

Under the preferred “trust-directed” execution model, Bitwise would solicit indicative prices from approved counterparties and generally complete purchases or sales over the counter. The filing says price would be the predominant selection factor, although order size, execution capabilities, reliability and responsiveness could also be considered.

The Aug. 3 prospectus described that mechanism but left the identities and approval date of the counterparties blank. The Aug. 28 amendment names Cumberland DRW and Nonco and states that both were approved as of that date.

Their framework agreements set general transaction terms but do not require Bitwise to use either firm. They also do not obligate either counterparty to participate in a creation, redemption or other trade. Consequently, naming two dealers supplies an intended execution route without guaranteeing liquidity or competition for every order.

Coinbase provides a fallback route

If every approved counterparty were unable or unwilling to transact, Coinbase would act as the prime execution agent through Coinbase Prime. The trust could temporarily borrow NEAR or cash from Coinbase Credit to avoid pre-funding a trade, then repay that credit after settlement.

Coinbase Custody is separately designated to safeguard the trust’s NEAR. For a cash creation under the preferred model, shares would not be issued until the counterparty delivered the required NEAR to the custody account. If delivery failed, the filing says the cash would be returned and the creation order canceled.

That separation is part of the proposed product’s arbitrage machinery. Authorized participants would create or redeem blocks of 10,000 shares, while the trust—not those participants—would arrange the corresponding token purchase or sale. Efficient execution is important because persistent differences between the fund’s trading price and the value of its NEAR holdings can produce premiums or discounts.

Seed terms are firmer, but key blanks remain

The new amendment says Bitwise Investment Manager expects to acquire the initial 20,000-share seed position at $25 per share. The resulting $500,000 would be used to purchase NEAR at or before listing. The language describes an expected future purchase, not a completed acquisition of $500,000 in NEAR.

Bitwise Asset Management previously supplied $200 of organizational seed capital on July 28, receiving eight shares at $25 each. That completed accounting transaction is distinct from the larger planned seed baskets disclosed Friday.

Important commercial details remain unresolved. The prospectus still leaves the annual sponsor fee blank, provides no final prospectus date and says the registration may be amended further. It also warns that staking introduces lockup, validator, slashing and liquidity risks.

No NEAR price, return or trading-volume claim is included because the filing does not establish a market reaction. The verified chronology is limited: Amendment No. 4 was filed Aug. 3, Amendment No. 5 supplied the counterparty names and seed terms on Aug. 28, and Coinburn’s publication window is Aug. 30 in America/New_York. Effectiveness, exchange listing and the proposed seed purchase remain future checkpoints.