Aave Trust Joins Grayscale’s Expanding Crypto Fund Arsenal

• Grayscale’s new Aave Trust offers investors secure exposure to the AAVE token, expanding its growing portfolio of DeFi products.
• Institutional interest in DeFi continues to rise, with Grayscale leading the way in bridging traditional finance and decentralized finance.

Following the development of Grayscale’s revelation on the top 20 cryptos poised for success in Q4, as recently reported by CNF, Grayscale has further expanded its product suite by launching the Grayscale Aave Trust, a fund that allows investors to gain exposure to the AAVE token.

This new fund is solely invested in AAVE and tracks its value, minus any fees and expenses. By offering this fund, as posted in a tweet by Grayscale’s official account, Grayscale enables investors to access the AAVE token as a security, avoiding the difficulties associated with directly purchasing, storing, and managing the token.

We are proud to announce the creation of a new single-asset crypto investment fund, Grayscale $AAVE Trust, which will be available through private placement.

Available to eligible accredited investors.

Read the press release: https://t.co/cJf6spWdnh pic.twitter.com/YMFftGnSCE

— Grayscale (@Grayscale) October 3, 2024

Moreover, as shared in GlobeNewswire, Grayscale announced in an official statement that the Aave Trust would be available through private placements for accredited investors.

Grayscale Aave Trust gives investors exposure to a protocol with the potential to revolutionize traditional finance,” said Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary. “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.

This new fund joins Grayscale’s growing list of crypto investment products, which already includes over 20 different vehicles, such as the popular Bitcoin Trust (GBTC) and the Ethereum Trust (ETHE). Grayscale has also recently launched the Avalanche Trust, expanding its offerings within the decentralized finance (DeFi) space.

Grayscale’s Growing Interest in DeFi

Grayscale’s increasing focus on DeFi reflects the broader trend of institutional interest in the sector. The firm’s introduction of various crypto products, including decentralized AI funds and spot Bitcoin ETFs, showcases its commitment to bridging traditional finance (TradFi) with DeFi.

Despite the growing interest in the Aave protocol, the AAVE token has experienced a slight downturn, dropping nearly 4% as of Thursday. It is currently trading at $137.59, according to BeInCrypto data.

However, the platform’s total value locked (TVL) remains strong, standing at $11.652 billion, making Aave the largest crypto lending protocol based on TVL, according to DeFiLlama.