Grayscale Investments has reportedly filed an S-1 registration statement with the U.S. Securities and Exchange Commission to launch a spot ETF tied to Aave.
If approved, the proposed fund would give investors direct exposure to AAVE through a traditional exchange-traded fund structure.
Grayscale has not shared details yet about the exact structure of the product or when it might launch. But the move shows the firm is continuing to expand beyond Bitcoin and Ethereum products.
Grayscale is one of the largest digital asset managers in the world and oversees billions of dollars in crypto assets. In recent years, it has successfully pushed forward spot ETFs linked to Bitcoin and Ethereum after receiving SEC approval.
Now, it appears to be targeting AAVE.
Aave is a decentralized finance (DeFi) protocol that allows users to lend and borrow cryptocurrencies without relying on banks or other middlemen. The AAVE token plays a key role in governance, allowing holders to vote on proposals and decisions that shape the protocol’s future.
The filing comes at a time when Aave has been getting renewed attention. Recently, the community voted on a proposal aimed at further decentralizing its operational structure. Reports say the proposal received strong support from token holders.
In simple terms, Grayscale seems to be betting that institutional interest in DeFi could grow — and that AAVE may be one of the projects investors want exposure to.
Whether the SEC approves the ETF remains to be seen, but the filing itself signals that crypto investment products continue to expand beyond just Bitcoin and Ethereum.
