Grayscale launches its own AAVE trust

Grayscale Investments has launched the Grayscale Aave Trust, offering accredited investors a new way to gain exposure to AAVE, the native token of Aave.

According to a Grayscale press release, this trust allows investors to indirectly gain exposure to Aave’s lending protocol, which has become the largest in the decentralized finance sector by total value locked. The trust functions like Grayscale’s other single-asset investment trusts, meaning it is solely invested in AAVE (AAVE) tokens.

Aave is a decentralized lending platform that allows users to borrow and lend cryptocurrency without intermediaries like banks. It uses smart contracts — automated programs that execute transactions — on the Ethereum (ETH) blockchain. This setup eliminates the need for credit checks, making borrowing more accessible.

Per the press release, the firm’s private placements, including the Aave Trust, are only available to accredited investors via a daily subscription.

Aave’s platform is known for its transparency and impartiality. It allows users to lend and borrow crypto assets with minimal human involvement.

At the time of writing, AAVE’s price is at $140.90. 

Grayscale’s other crypto moves

On Sept. 12, Grayscale launched the XRP Trust, offering investors exposure to XRP (XRP), the token used on the XRP Ledger. On Sept. 11, Grayscale also announced its Sui (SUI) Trust. 

Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary, believes that Aave’s decentralized approach has the potential to change finance by eliminating intermediaries and human bias.

“Grayscale Aave Trust gives investors exposure to a protocol with the potential to revolutionize traditional finance. By leveraging blockchain technology and smart contracts, Aave’s decentralized platform aims to optimize lending and borrowing while removing intermediaries and reducing reliance on human judgment.”

Rayhaneh Sharif-Askary

In August, AVAX (AVAX), Avalanche’s native token, jumped 12% after Grayscale launched its Avalanche Trust. This marked a potential trend reversal following a prolonged decline, with the token recovering 48% in two weeks after hitting a nine-month low.