If Grayscale receives regulatory approval, the ETF will start trading on the NYSE Arca stock exchange. The management of the investment company stated that its fund is designed to provide traditional investors access to the native coin of the decentralized lending platform Aave, created on the Ethereum blockchain.
The company's filing states that the AAVE-ETF will charge a fee of 2.5% of the fund's net asset value, which will need to be paid in tokens $AAVE . The storage of crypto assets and execution of trades is planned to be handled by the American cryptocurrency exchange Coinbase.
Grayscale launched the Aave Trust in October 2024. Currently, the trust manages assets worth approximately $896,230. If the SEC approves the conversion to an exchange-traded crypto fund, it will become one of the first ETFs linked to AAVE listed on U.S. exchanges. The cryptocurrency AAVE is already represented in index funds focused on decentralized finance (DeFi), as well as in the 21Shares Aave ETP and Global X Aave ETP funds traded in Europe.
The AAVE token has fallen by 26.7% over the last month and by 80.5% from its all-time high of $661.69 reached in May 2021. Currently, AAVE is trading at $126 with a market capitalization of $1.93 billion.
At the beginning of the year, Grayscale submitted applications to the American regulator to launch exchange-traded funds linked to the cryptocurrencies NEAR and Binance Coin. According to recent observations by Grayscale, Bitcoin no longer correlates with gold, and its price is more dependent on the stocks of technology companies.