In February 2026, Grayscale filed with the SEC to convert its Grayscale Aave Trust into a spot AAVE exchange-traded fund. The filing, which listed Coinbase as custodian and proposed a 2.5% sponsor fee, signaled growing institutional interest as the token’s price and network activity showed a concurrent recovery.
Asset manager Grayscale filed with regulators in early February 2026 to convert its Grayscale Aave Trust into a spot AAVE ETF. The proposed product would list on NYSE Arca and directly track the token, with Coinbase serving as custodian and a 2.5% sponsor fee paid in AAVE.
The filing shifted market tone for AAVE, which holds a market capitalization near $1.8 billion. This development prompted a question about institutional intent, though regulatory approval remained uncertain at the time.
Market dynamics aligned with this institutional signal as Bitcoin approached $70,000 on February 15. AAVE reacted immediately with a price surge of over 22%, climbing from $106 to stabilize near $128.
Concurrently, the token’s aggregated Open Interest expanded sharply from approximately $153 million to around $237 million. On the daily chart, AAVE reclaimed its long-term ascending support line, ruling a prior breakdown as a fakeout.
The recovery was supported by on-chain data showing Weekly Active Addresses climbing back to levels seen in late 2024 and early 2025. This rebound in network participation indicated the move was supported by more than just speculative leverage.
Local price resistance for AAVE remained between $148 and $180, according to technical analysis. A sustained break above that zone would be required to confirm a broader expansion toward the $348–$398 range.
