Grayscale Investments has filed with the SEC to convert its AAVE trust into a regulated exchange-traded fund (ETF). The move, documented in a February 13, 2026 filing, intensifies competition after Bitwise filed for its own AAVE ETF in December. This proposed ETF aims to meet growing U.S. investor demand for accessible exposure to the decentralized finance (DeFi) sector.
Grayscale Investments has filed to convert its AAVE trust into an ETF. This follows Bitwise filing its own proposal for an AAVE ETF last December.
AAVE is the native token of a major DeFi lending protocol. According to CoinMarketCap data, it holds a market cap of $1.8 billion and trades at $128.40.
Grayscale’s filing targets increasing investor appetite for regulated DeFi access. The token is already available to European investors through products like the 21Shares AAVE ETP.
The firm has a history of converting closed-end funds into ETFs. It previously succeeded in legal efforts to convert its Bitcoin Trust, setting a precedent for spot Bitcoin ETFs.
The proposed Grayscale AAVE ETF would carry a 2.5% sponsor fee. Coinbase is named as the intended prime broker and custodian for the product.
This filing follows similar plans to convert its NEAR trust into an ETF. That trust held roughly $900,000 in assets at the time of its announcement.
Grayscale continues expanding its suite of regulated crypto investment products. The AAVE ETF represents another strategic move to offer compliant exposure to emerging crypto assets.
