Grayscale Files to Convert Aave Trust Into ETF on NYSE Arca

Digital asset manager Grayscale Investments has filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission to convert its existing Aave trust into a spot exchange-traded fund. The proposed product would be renamed the Grayscale Aave Trust ETF and listed on NYSE Arca under the ticker symbol “GAVE.”

According to the filing, the fund will charge a 2.5% management fee. Coinbase is set to act as both custodian and prime broker. The ETF would hold AAVE tokens directly, offering investors spot exposure to the asset through a regulated brokerage structure.

Growing Institutional Demand for Altcoin ETFs

The move signals continued Wall Street interest in altcoin-based investment vehicles despite broader market volatility. Aave, the governance token of the Aave protocol, currently underpins one of the largest decentralized finance ecosystems, with more than $27 billion in total value locked.

AAVE recently traded near $126, down about 1.6% over 24 hours and more than 80% below its all-time high of roughly $662 reached in May 2021.

Bitwise Also Pursues Aave ETF Approval

Grayscale’s filing follows a similar application from Bitwise Asset Management, which previously sought approval for an AAVE-focused ETF. If approved, the funds would become the first US-listed products to provide direct exposure to Aave, joining existing European exchange-traded products tracking the token.

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