Digital asset manager Grayscale continues to expand its crypto offerings with the launch of a new investment vehicle focused on Aave (AAVE).
Digital asset manager Grayscale continues to expand its crypto offerings with the launch of a new investment vehicle focused on Aave (AAVE), the native token of a leading Ethereum-based decentralized lending protocol.
This latest product joins Grayscale's ever-growing offerings, adding exposure for institutional investors to the 38th largest cryptocurrency, with a market capitalization of $2.14 billion.
The Grayscale AAVE Trust will be closed-end, in contrast to the firm's Bitcoin and Ethereum ETFs that received SEC clearance earlier this year.
According to Rayhaneh Sharif-Askary, head of product and research at Grayscale, the launch is of strategic importance: "We're excited to offer investors exposure to an innovative, decentralized lending protocol, which has the potential to disrupt traditional finance with blockchain and smart contract technology.".
AAVE is leading in this DeFi space, which attempts to redefine some core reasons behind traditional banking with blockchain technologies. The protocol has managed to be one of the most recognized decentralized applications which attracts big companies and banks while keeping strict security by thorough audits.
This launch follows Grayscale's successful introduction of spot Bitcoin ETFs back in January this year, Ethereum ETFs in July, and the rollout of an XRP trust last month. The asset manager currently provides exposure to a suite of digital assets such as Bitcoin Cash, Filecoin, Chainlink, and Litecoin through similar trust structures.
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