Grayscale has filed with the US Securities and Exchange Commission to convert its Aave trust into an exchange-traded fund, signalling continued Wall Street interest in altcoin exposure.
The firm submitted a Form S-1 registration statement to rename the vehicle the Grayscale Aave Trust ETF and list it on NYSE Arca under the ticker GAVE.
The proposed ETF would charge a 2.5% management fee, with Coinbase acting as custodian and prime broker for the fund.
The product is designed to track Aave, the native token of the largest decentralised finance protocol, which holds more than $27 billion in total value locked according to DefiLlama.
Grayscale joins Bitwise in seeking regulatory approval for a standalone Aave ETF, as Bitwise previously filed to launch its own AAVE-focused strategy fund.
While Grayscale’s fund would hold AAVE tokens directly, Bitwise’s proposal outlines a mix of direct token exposure and related securities, including other ETFs linked to AAVE.
AAVE traded near $126, down about 1.6% on the day and more than 80% below its May 2021 peak of nearly $662, highlighting the token’s volatility amid broader crypto market weakness.
At the time of reporting, Aave price was $125.83.