Grayscale Files to Convert Aave Trust Into ETF

Grayscale filed a Form S-1 registration statement with the Securities and Exchange Commission on Friday to convert its trust that tracks the Aave token into an exchange-traded fund. The company said it will rename the product the Grayscale Aave Trust ETF, seek a listing on NYSE Arca under the ticker GAVE, charge a 2.5% fee and use Coinbase as both custodian and prime broker.

The filing is one of several recent efforts to create altcoin ETFs and makes Grayscale the second firm to seek US approval for an Aave-linked fund, joining Bitwise. Bitwise filed in December for the Bitwise AAVE Strategy ETF and proposed holding up to 60% of assets directly in AAVE tokens and at least 40% in securities, while Grayscale’s proposal would hold AAVE tokens directly.

If approved, the two would be the first US funds to offer direct exposure to Aave. Aave is the largest decentralized finance protocol, with DefiLlama listing more than $27 billion in total value locked.

United States

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