Grayscale Launches New AAVE Trust for Institutional Investors

YEREVAN (CoinChapter.com) — Grayscale has launched its latest investment product, the AAVE Trust, providing institutional investors with exposure to Aave (AAVE), one of the most prominent decentralized finance (DeFi) platforms. Aave operates on the Ethereum blockchain and focuses on decentralized lending.

AAVE Trust: Expanding Grayscale’s Crypto Product Line

AAVE is currently the 38th largest cryptocurrency, with a market capitalization of $2.14 billion. This trust aligns with Grayscale’s established approach to offering various digital asset investment products, which also include trusts for Bitcoin, Ethereum, and other cryptocurrencies.

The Aave platform enables users to lend and borrow digital currencies without traditional intermediaries. This trust is expected to attract institutions interested in gaining exposure to decentralized finance through a secure and regulated investment vehicle.

Grayscale Expands DeFi Offerings Following Recent Launches

Unlike Grayscale’s Bitcoin and Ethereum ETFs, the AAVE Trust will be closed-end, meaning shares will not be as easily redeemable. This trust operates similarly to other trusts managed by Grayscale, such as those for Filecoin, Chainlink, and Litecoin.

Rayhaneh Sharif-Askary, head of product and research at Grayscale, emphasized the trust’s role in expanding access to the decentralized lending market. She mentioned the potential of blockchain and smart contracts to disrupt traditional finance but stopped short of making any specific predictions or strong claims.

Grayscale launched the AAVE Trust soon after releasing other major products in 2024. Earlier this year, the firm introduced its spot Bitcoin ETF. In July, Grayscale followed with Ethereum ETFs. Last month, it added an XRP trust to its lineup.

With these new offerings, Grayscale shows increasing interest from institutions. They aim to provide access to a broad range of digital assets, including DeFi-related products.