Grayscale Seeks to Convert AAVE Trust Into U.S. ETF
Grayscale said it intends to convert its AAVE Token Trust into an ETF and list the product on NYSE Arca, signaling a push to bring a major DeFi token into a familiar investment wrapper. The conversion would allow investors to gain exposure to AAVE through brokerage accounts and retirement platforms that support ETFs, potentially increasing liquidity and institutional participation in the token. The proposal builds on Grayscale’s recent efforts to transform crypto trusts into regulated ETFs, though any conversion remains subject to regulatory review and market conditions. If approved, the listing could further normalize spot exposure to DeFi assets in U.S. markets and serve as a barometer for demand in tokenized governance and lending projects, while also adding another layer of regulatory scrutiny and transparency for AAVE holders.