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SEC Accepts Grayscale Filing To Convert Aave Trust Into Spot ETF

The review will test U.S. regulators’ stance on single-asset DeFi ETFs following Grayscale’s earlier trust conversions.

Overview

  • The SEC has taken Grayscale’s Aave ETF registration into review under Accession No. 0001193125-26-051643.
  • The proposed fund would hold AAVE directly and seeks to list its shares on NYSE Arca.
  • Grayscale’s filing names Coinbase as both custodian and prime broker for the product.
  • The sponsor fee is set at 2.5% of net asset value and would be paid in AAVE tokens.
  • Competition includes a prior Bitwise application, and AAVE gained about 9% on the day the filing became public.