Grayscale Files with SEC to Launch Aave ETF on NYSE Arca

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Grayscale Investments is seeking to expand its crypto ETF lineup, filing a registration statement with US regulators to convert its Aave trust into a fully-fledged exchange-traded fund. The move would bring the token of a leading DeFi protocol to the major exchange.

The crypto asset manager submitted a Form S-1 to the Securities and Exchange Commission on Friday, outlining its plan to convert the existing trust and rebrand it as the Grayscale Aave Trust ETF. According to the filing, the fund is intended to trade on NYSE Arca under the ticker GAVE.

The ETF will carry a sponsor fee of 2.5 percent, with Coinbase set to serve as both custodian and prime broker for the fund’s holdings. This structure aligns with Grayscale’s other single-asset crypto ETFs.

The filing arrives at a time when Wall Street’s interest in diverse crypto exposure remains robust. Grayscale’s application is part of a wave of proposals for ETFs tracking altcoins, suggesting that institutional appetite for digital assets persists even as the market experiences a downturn.

Aave is a cornerstone of the decentralized finance ecosystem. As the largest protocol of its kind, it boasts over $27 billion in total value locked, according to DefiLlama. The platform facilitates crypto lending and borrowing across various networks, and its native AAVE token can be staked by users to earn yields.