Grayscale Converts AAVE Trust to ETF

Crypto asset manager Grayscale has filed a Form S-1 application with the U.S. Securities and Exchange Commission (SEC) to convert its trust tracking the token (AAVE) of the decentralized lending protocol Aave into an exchange-traded fund (ETF). The fund will be renamed Grayscale Aave Trust ETF and will trade on the NYSE Arca exchange under the ticker GAVE. The management fee will be 2.5%, and Coinbase will serve as custodian and chief prime broker.

Source: Henry Jim

Details of the Grayscale AAVE ETF Application

Grayscale becomes the second company in this space after Bitwise’s Aave ETF application submitted in December. While Bitwise’s fund plans to hold 60% of its assets directly in AAVE and at least 40% in securities exposed to AAVE, Grayscale will hold AAVE directly. This application could expand the sector by facilitating traditional investors’ access to DeFi. Visit our page for detailed AAVE analysis.

Aave Protocol and TVL Leadership

According to DefiLlama, Aave is the largest DeFi protocol with a total value locked (TVL) of 27 billion dollars. Users can lend and borrow crypto on multiple blockchains and earn yield by staking AAVE. The protocol’s flash loans and risk management features increase liquidity. In Europe, 21Shares launched a similar product on Nasdaq Stockholm in November, and Global X launched similar products in Germany at the beginning of 2023.

AAVE Price and Technical Analysis

The AAVE token fell 1.74% in the last 24 hours to 125.79 dollars and is 80% below its 2021 peak of 662 dollars. RSI at 46.44 is in the neutral zone, the trend is downward, and Supertrend is giving a bearish signal. EMA 20: 125.92$.

• Supports: S1: 125,25$ (⭐ Strong, -0,43%), S2: 118,34$ (⭐ Strong, -5,92%)
• Resistances: R1: 125,85$ (⭐ Strong, +0,05%), R2: 136,31$ (⭐ Strong, +8,36%)

If the nearby support breaks, the decline could deepen. Check PRIME futures for the related PRIME token. AAVE spot market data is up to date.