Grayscale has submitted a request to the SEC to transform its trust for the AAVE token into an exchange-traded fund (ETF). The filing, which includes a Form S-1 registration statement, was made on Friday and aims to rebrand the trust as the Grayscale Aave Trust ETF. This ETF is planned to be listed on NYSE Arca with the ticker symbol "GAVE" and will impose a 2.5% fee. Coinbase is designated as the custodian and prime broker for the fund.
With over $27 billion locked in total value, Aave is recognized as the leading decentralized finance protocol, allowing users to lend and borrow cryptocurrencies across various blockchains. Grayscale's initiative comes alongside Bitwise, which filed in December to launch its own Aave ETF, the Bitwise AAVE Strategy ETF. This positions both companies as the first in the United States to provide direct exposure to Aave.
Recently, the AAVE token saw a decline of 1.6%, trading at $126, a stark contrast to its peak of nearly $662 in May 2021. The ongoing interest in crypto ETFs from firms like Grayscale and Bitwise indicates a continued demand for cryptocurrency investment options, even amid a challenging market environment.