AAVE ETF Filing Puts Grayscale in Race With Bitwise

AAVE News

Grayscale submitted paperwork to convert its AAVE trust into an exchange-traded fund on Feb. 13, entering competition with Bitwise for the first DeFi token ETF in the United States. The Securities and Exchange Commission received the filing on Friday.

Bitwise filed for 11 separate funds in December, appearing to lead the race for AAVE ETF approval. The December submission gave Bitwise a two-month head start in the regulatory review process.

serves as the native token for the Aave protocol, the largest decentralized lending platform in DeFi. The token holds a market capitalization of approximately $1.8 billion and trades at $119, up 9% on the day according to data from The Block.

The token reached an all-time high of $661.69 in April 2021. Current prices represent an 82% decline from that peak despite recent gains.

Investment products featuring AAVE already exist in European markets. The 21Shares Aave ETP and Global X Aave ETP both trade in Europe, alongside various DeFi-focused index products that include Aave exposure.

Grayscale has successfully converted multiple closed-ended trusts into ETFs, beginning with its spot Bitcoin fund. The company's legal victory over the SEC regarding its