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Grayscale filed to convert its closed-end AAVE trust into a U.S. spot ETF
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The proposed ETF would list on NYSE Arca with Coinbase as custodian
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The sponsor fee is set at 2.5 percent of NAV, payable in AAVE
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The move adds to growing institutional demand for DeFi token exposure
Grayscale Expands Its DeFi ETF Push
Grayscale has filed with the U.S. Securities and Exchange Commission to convert its AAVE trust into an exchange-traded fund. If approved, the product would list on NYSE Arca and provide direct exposure to AAVE, the governance token of the Aave protocol.
Aave is currently the largest decentralized lending protocol in DeFi, and its token has a market capitalization of roughly $1.8 billion. The proposed ETF would charge a 2.5 percent annual sponsor fee, payable in AAVE, and use Coinbase as both custodian and prime broker.
Institutional Interest in DeFi Tokens
Grayscale has already converted several closed-end trusts into ETFs, most notably its Bitcoin product after winning a key legal battle against the SEC. That case helped open the door for U.S. spot Bitcoin ETFs.
The AAVE filing signals continued institutional interest in DeFi-native assets beyond Bitcoin and Ethereum. Europe already offers Aave-related ETPs through providers like 21Shares and Global X, but a U.S. ETF would significantly expand access for American investors.
If approved, the Grayscale AAVE ETF would mark another milestone in the normalization of DeFi tokens within traditional financial markets.
