Crypto asset supervisor Grayscale filed for regulatory approval to rework its have faith tracking the token of the decentralized lending protocol Aave into an substitute-traded fund (ETF).
The firm filed a Produce S-1 registration commentary with the Securities and Substitute Price on Friday, announcing it intends to rework the have faith and rename it the Grayscale Aave Have confidence ETF.
Grayscale added that it’s miles taking a trace to begin the fund on NYSE Arca, indubitably one of essentially the most well-most standard exchanges for trading ETFs, below the ticker “GAVE.” This can cling a payment of 2.5%, and Coinbase will motivate as every its custodian and high dealer.
Grayscale’s filing is indubitably one of multiple ETFs that look to be tied to altcoins, suggesting that Wall Avenue aloof has an appetite for crypto exposure even amid a market downturn.
Aave is the ideal decentralized finance protocol, with over $27 billion in total price locked, essentially based entirely on DefiLlama. The platform permits users to lend and borrow crypto all the absolute top intention thru multiple blockchains, and the $AAVE token is also staked to develop yield.
Grayscale joins Bitwise in Aave ETF speed
With its filing, Grayscale is the second to pass looking US regulatory acclaim for an ETF tied to Aave ($AAVE), currently joining ideal Bitwise in taking a trace to begin a identical fund.
Bitwise filed with the SEC in December to begin the Bitwise $AAVE Approach ETF, amongst a slew of filings that sought to originate ETFs tied to conventional altcoins, at the side of Uniswap (UNI) and Zcash (ZEC).
Bitwise’s ETF plans to prolong to 60% of its sources without prolong in $AAVE tokens and no lower than 40% in securities, like other ETFs, that are uncovered to $AAVE, whereas Grayscale’s would without prolong withhold $AAVE tokens.
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The two ETFs are residing to be the first in the US to produce exposure to Aave on its delight in, joining a brief list of out of the country products that cling launched to trace the token.
In Europe, 21Shares launched an Aave substitute-traded product on the Nasdaq Stockholm in November, coming years after World X launched a identical Aave product in early 2023 in Germany.
The $AAVE token has traded down 1.6% over the past day to $126 and is better than 80% down from its all-time high of nearly $662, which it reached in Could well 2021 amid a bull market for altcoins on the time, essentially based entirely on CoinGecko.
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