Crypto asset manager Grayscale Investments has requested to convert its existing Aave trust into an exchange-traded fund, in an attempt to turn one of decentralized finance’s core lending tokens into a U.S.-listed product for traditional investors.
NYSE Arca Listing, Ticker GAVE, 2.5% Fee
In an S-1 Form filed with the U.S. Securities and Exchange Commission on Feb. 13, the firm proposed renaming its vehicle Grayscale Aave Trust ETF and listing it on NYSE Arca under the ticker GAVE. The fund would hold AAVE tokens directly, charge a 2.5% annual sponsor fee, and use Coinbase entities for custody and prime brokerage services.
The Aave trust was set up as a Delaware statutory trust and initially operated as a closed-end product focused on AAVE. Under the new plan, it would remain a passive vehicle whose shares are intended to mirror the value of the AAVE held in the portfolio, as measured against a reference index and reduced by expenses and liabilities.
Creation and Redemption Mechanism, NAV Tracking Risks
According to the filing, creation and redemption would continue to occur in large share blocks through authorized participants. Grayscale expects this basket-based mechanism to help keep the ETF’s trading price close to its net asset value. However, the prospectus warns that the shares may trade above or below net asset value for extended periods, particularly when markets are under stress or liquidity is limited.
More Firms Seek Exposure to AAVE Through ETFs
The filing makes Grayscale the second US issuer pursuing an Aave-linked ETF, as Bitwise submitted an application in December for a Bitwise AAVE Strategy ETF, which would blend direct token holdings with other securities offering Aave exposure.
Both proposals would sit alongside a small group of European products already tracking AAVE, including exchange-traded products listed by 21Shares on Nasdaq Stockholm and by Global X on German exchanges.
Aave powers a large on-chain borrowing and lending system that allows users to post digital assets as collateral and earn yield by supplying liquidity across multiple networks. Its governance token, AAVE, has a capped supply of 16 million and an aggregate market value of roughly $1.9 billion and, according to the prospectus, recorded around $57 million in 24-hour trading volume at the end of 2025.
AAVE Rebounds From January Lows as Momentum Stabilizes
Since December, AAVE has slid from a late-year peak in the $190–$200 range into a steady downtrend that extended through January, culminating in a sharp selloff toward the $100–$110 area before rebounding, with the recent recovery into the $125–$130 zone pointing to short-term stabilization even as the broader structure on the daily chart still shows a pattern of lower highs.
RSI has rebounded from near-oversold levels around 30 into the high 40s, while MACD has turned positive again, hinting that momentum is starting to stabilize. Heavy volume on the January selloff and on the recent recovery points to real interest near support, yet AAVE remains capped below its December peaks, keeping this move in the “early repair” camp rather than a confirmed change in trend.
