Grayscale Aave Trust Launch

Grayscale Investment has launched a new fund that provides investors with exposure to the governance token AAVE. This announcement was made on Thursday by the asset management firm.

The trust, termed the Grayscale Aave Trust, is available to "eligible individual and institutional accredited investors." The Aave platform specializes in decentralized finance (DeFi), facilitating borrowing and lending of cryptocurrencies through smart contracts.

> "The Grayscale Aave Trust provides investors exposure to a protocol with the potential to revolutionize traditional finance," stated Grayscale's Head of Product & Research, Rayhaneh Sharif-Askary. "By utilizing blockchain technology and smart contracts, Aave's decentralized platform aims to optimize lending and borrowing by eliminating intermediaries and minimizing reliance on human judgment."

Grayscale has previously launched various crypto funds, particularly spot Bitcoin and Ether ETFs over the past year. In January, the SEC approved several spot Bitcoin ETFs, including those from significant firms like BlackRock, Grayscale, and Fidelity. Following that, the agency also authorized eight Ethereum ETFs.

With increasing competition, other firms are looking to introduce spot crypto ETFs, such as one from Bitwise intended to track XRP. Furthermore, Grayscale announced plans to introduce an XRP "closed-end" fund for accredited investors.