Grayscale filed with the SEC to convert its AAVE Trust into an ETF amid growing competition from Bitwise.
The proposed ETF would list on NYSE Arca with Coinbase as custodian and a 2.5% sponsor fee.
Move follows Grayscale trust to ETF conversions including its Bitcoin Trust and NEAR product plans.
Grayscale filed an S-1 registration statement with the U.S. Securities and Exchange Commission on February 13, 2026, seeking to convert its AAVE Trust into an exchange-traded fund. The filing took place in the United States and follows increased competition among crypto asset managers. The move involves Grayscale, regulators, and the AAVE market.
Competition Drives the AAVE ETF Filing
According to the filing, Grayscale’s decision followed earlier action by Bitwise, which submitted an AAVE ETF proposal in December. At that time, reports noted Bitwise filed paperwork covering 11 separate crypto funds. Consequently, Grayscale moved to maintain its position amid intensifying competition.
AAVE serves as the governance and utility token of the Aave protocol, a decentralized lending and borrowing platform. Market data cited in reports placed AAVE’s capitalization near $1.8 billion. However, records still point to April 2021 as the token’s price peak at $661.69.
In addition, European markets already offer AAVE-linked products. These include the 21Shares AAVE ETP and the Global X AAVE ETP. Notably, those products remain unavailable to U.S. investors.
ETF Structure and Regulatory Background
Under the proposal, the Grayscale AAVE ETF would charge a 2.5% sponsor fee based on net asset value. The fee would be paid in AAVE. Furthermore, Grayscale named Coinbase as prime broker and custodian.
The filing also seeks to list shares on NYSE Arca. Grayscale has previously converted closed-ended trusts into ETFs. That strategy included a legal dispute with the SEC over its Bitcoin Trust conversion, which later cleared the path for U.S. spot bitcoin ETFs.
Broader Changes Across Grayscale Products
Separately, Grayscale recently filed an S-1 to convert its NEAR Trust into an ETF. The product provides exposure to the NEAR Protocol token. Grayscale said it plans to rename the product and shift its listing from OTC Markets to NYSE Arca.
At the time of disclosure, the NEAR Trust held about $900,000 in assets. Grayscale also stated the trust had not consistently met its investment objective.
The post Grayscale Files S-1 to Convert AAVE Trust Into ETF appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.