Grayscale files to convert AAVE token trust into ETF to list on NYSE Arca

Grayscale has filed to convert its AAVE trust into an exchange-traded fund, according to a Securities and Exchange Commission filing on Friday. Bitwise appears to have beaten the prominent crypto asset manager to filing for AAVE ETF consideration, having submitted paperwork for 11 separate funds in December. AAVE is the native token for the Aave protocol, by far the dominant decentralized lending operation in DeFi. The token has a market cap of about $1.8 billion and its current price of $119, up about 9% on the day, according to The Block’s data. The token hit an all-time high of $661.69 in April 2021. Aave has been a popular asset for investment products, including DeFi-focused index products and standalone vehicles like the 21Shares Aave ETP and Global X Aave ETP, which trade in Europe. Grayscale has converted a number of its closed-ended trusts into ETFs, beginning with its spot Bitcoin ETF. In fact, Grayscale’s winning legal battle with the SEC regarding its Bitcoin Trust conversion opened the door for other spot bitcoin ETFs in the U.S.The proposed Grayscale AAVE ETF would have a sponsor fee of 2.5% on NAV, payable in AAVE, and use Coinbase as a custodian and prime broker. It intends to list on the NYSE Arca market.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.