Grayscale Launches Aave Trust Fund

Grayscale Investment has launched the Grayscale Aave Trust, providing investors exposure to governance token AAVE as of Thursday.

The trust is available to “eligible individual and institutional accredited investors.” The Aave platform is a decentralized finance (DeFi) crypto platform that allows users to borrow and lend crypto assets through smart contracts.

“Grayscale Aave Trust gives investors exposure to a protocol with the potential to revolutionize traditional finance,” said Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research. “By leveraging blockchain technology and smart contracts, Aave’s decentralized platform aims to optimize lending and borrowing while removing intermediaries and reducing reliance on human judgment.”

Over the past year, Grayscale has launched several crypto funds, including spot Bitcoin and Ether ETFs. The SEC approved multiple spot Bitcoin ETFs in January from firms like BlackRock, Grayscale, and Fidelity, along with eight Ethereum ETFs.

Other firms are competing to launch additional spot crypto ETFs, with Bitwise planning to track XRP. Additionally, Grayscale announced intentions to create an XRP “closed-end” fund for accredited investors.