Grayscale filed with the U.S. Securities and Exchange Commission to convert its Aave trust into an exchange traded fund. The filing used a Form S 1 registration statement and aimed to list on NYSE Arca.
The company said it plans to rename the product the Grayscale Aave Trust ETF. It also disclosed the proposed ticker, “GAVE.” In the same SEC filing, Grayscale set a 2.5% fee.
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The document also named Coinbase as both custodian and prime broker. As a result, Coinbase would hold the AAVE token for the fund and support trading and related services.
Grayscale Aave ETF plan sets structure, ticker, and custody
The Grayscale Aave ETF filing focused on converting an existing trust. That approach mirrors how Grayscale has handled other crypto products in the past. However, this filing centers on the AAVE token and the Aave DeFi protocol.
The filing said the ETF would list on NYSE Arca, a major venue for ETF trading. It also set the GAVE ticker, which would identify the fund on the exchange. Those details matter for investors who track listings by ticker.
The SEC filing also clarified custody and brokerage roles. Coinbase appeared in both roles, as Coinbase custodian and prime broker.
Therefore, the filing tied the product’s core operations to one of the largest U.S. crypto service firms.
Aave ETF push expands as Bitwise joins the race
Grayscale became the second issuer seeking a U.S. product tied to Aave. Bitwise filed earlier for the Bitwise AAVE Strategy ETF, adding pressure to the growing Aave ETF pipeline.
The Bitwise filing described a split approach. It said the fund may hold up to 60% of assets in AAVE token exposure and at least 40% in securities. Those securities could include other funds with AAVE exposure.
By contrast, Grayscale described direct AAVE token holdings for the Grayscale Aave Trust conversion. So, both filings targeted Aave ETF access, but they used different structures.
Meanwhile, the wider ETF wave included filings tied to other altcoins, including Uniswap and Zcash.
Aave DeFi protocol scale reaches $27 billion TVL as token trades near $126
Aave runs a decentralized lending system that lets users lend and borrow crypto. Users supply assets to pools, and borrowers take loans using crypto collateral. This is why many market participants label it a core Aave DeFi protocol.
Data from DefiLlama put Aave at more than $27 billion in total value locked. That figure made Aave the largest DeFi protocol by TVL in the cited data. In addition, the AAVE token can be staked, which may generate yield.
Price data in the report showed AAVE down 1.6% over the past day to about $126. The report also said AAVE remained more than 80% below its all time high near $662, reached in May 2021.
Overseas Aave ETP listings exist as U.S. Aave ETF filings grow
Outside the United States, markets already list exchange traded products tied to Aave. In Europe, 21Shares launched an Aave exchange traded product on Nasdaq Stockholm in November.
Separately, Global X launched a similar Aave product in Germany in early 2023. These overseas listings created regulated wrappers tied to the AAVE token.
In the U.S., the Grayscale Aave ETF and the Bitwise Aave ETF filing stand out because they target direct exposure routes. The report credited Henry Jim as the source for the filing coverage.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: February 16, 2026 • 🕓 Last updated: February 16, 2026
