Grayscale has filed with regulators to convert its Aave trust into a spot exchange-traded fund, marking a significant move to bring direct exposure to the decentralized finance token to a wider market. The proposed Grayscale Aave Trust ETF plans to list on NYSE Arca under the ticker “GAVE” with a 2.5% fee, entering a race that includes a similar filing from Bitwise. This filing suggests continued institutional interest in cryptocurrency products beyond Bitcoin, even during a market downturn.
Grayscale has formally sought regulatory approval to convert its existing trust tracking the Aave token into an exchange-traded fund. The company filed a Form S-1 registration statement with the Securities and Exchange Commission on Friday for this conversion.
The new fund would be renamed the Grayscale Aave Trust ETF and aims to list on NYSE Arca under the ticker “GAVE.” It will charge a 2.5% fee for management, and Coinbase is designated to serve as both its custodian and prime broker.
This filing is one of several recent ETF applications seeking to track alternative cryptocurrencies. It indicates that Wall Street maintains an appetite for crypto exposure despite broader market conditions.
Aave is the largest decentralized finance protocol with over $27 billion in total value locked, according to data from DefiLlama. The platform enables users to lend and borrow crypto across multiple blockchains, and its native AAVE token can be staked to earn yield.
Grayscale is now the second firm seeking U.S. approval for an Aave-focused ETF, joining Bitwise in this specific race. Bitwise filed with the SEC in December to launch the Bitwise AAVE Strategy ETF alongside other altcoin-focused funds.
Bitwise’s proposed ETF plans to hold up to 60% of its assets directly in AAVE tokens and at least 40% in related securities. Grayscale’s fund would hold AAVE tokens directly, offering a more concentrated exposure.
The two proposed U.S. funds would be the first in the country to offer direct exposure to Aave. They would join a short list of overseas products, including one launched by 21Shares on the Nasdaq Stockholm in November.
The AAVE token was trading around $126, down 1.6% over the past day. It remains more than 80% below its all-time high of nearly $662 reached in May 2021, according to CoinGecko.
