Grayscale Expands Crypto Offerings with Aave Trust

Grayscale, the American digital currency asset management company, has launched an Aave fund, providing investors with exposure to the AAVE token. This new offering expands Grayscale’s lineup of crypto investment products, which now includes over 20 different vehicles.

Aave is an open-source protocol that enables the creation of non-custodial liquidity markets. It allows users to earn interest by supplying and borrowing assets at either a variable or stable interest rate.

The fund, Grayscale Aave Trust, is solely invested in and deriving value from the price of the AAVE token. It will track its value, less fees and expenses. With this fund, investors will be able to access the token as a security. While doing so, they will avoid challenges relating to buying, storing, and safekeeping the AAVE token directly.

“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 official announcement.

Grayscale Aave Trust adds to the list of funds the asset manager offers, extending its suite of investment products in the decentralized finance (DeFi) space. As BeInCrypto reported, the firm launched an Avalanche Trust recently, offering exposure to the AVAX token.

Read more: How To Use Aave?

Taken together, Grayscale now boasts over 20 different crypto investment vehicles, including the flagship Bitcoin Trust (GBTC) and the Ethereum Trust (ETHE). It is worth mentioning that these funds come after Grayscale successfully launched spot Bitcoin ETFs in January. These draw significant investor interest in crypto products that are now tradable publicly.

Grayscale also opened a decentralized AI fund to accredited investors, offering them a diversified basket of tokens from sector projects. These developments highlight Grayscale’s increasing institutional interest in integrating traditional finance (TradFi) into the DeFi ecosystem.

Meanwhile, interest in the Aave protocol comes as the decentralized lending platform allows users to lend and borrow crypto using automated processes. Specifically, Aave allows users to borrow without the need for traditional financial intermediaries.

The platform has grown in popularity. It is the largest crypto lending protocol based on metrics of total value locked (TVL) of $11.652 billion, according to data from DeFiLlama.

Read more: Top 11 DeFi Protocols To Keep an Eye on in 2024

Despite the news, the AAVE token price remains subdued, down nearly 4% since Thursday’s session opened. According to BeInCrypto data, the token is currently trading at $137.59.

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