Grayscale Files for Aave ETF Conversion, Eyes NYSE Arca Listing

Asset management giant Grayscale has formally requested US regulatory approval to convert its Aave investment trust into an exchange-traded fund. The proposed vehicle would trade on one of the country’s leading ETF marketplaces.

The company filed a Form S-1 registration statement with the Securities and Exchange Commission on Friday. The document outlines plans to convert the existing trust and rename it the Grayscale Aave Trust ETF. Grayscale aims to list the fund on NYSE Arca, utilizing the ticker symbol GAVE.

According to the filing, the ETF will charge investors a 2.5 percent management fee. Coinbase has been named to act as both custodian and prime broker, providing the necessary infrastructure to support the fund.

The proposal is part of a growing list of applications for ETFs tied to altcoins, demonstrating that Wall Street’s interest in digital asset vehicles continues unabated. These filings persist even as the cryptocurrency market navigates a broader downturn.

Aave is the largest protocol in the decentralized finance space. DefiLlama data shows the platform has amassed over $27 billion in total value locked, offering a suite of lending and borrowing services across multiple blockchain networks. Holders of its AAVE token can also stake them to earn rewards from the protocol’s activity.

Grayscale’s move puts it in direct competition with Bitwise, as both firms now vie to become the first to launch a US ETF tracking the Aave token.