Grayscale launches Aave investment fund
Asset manager Grayscale Investments has launched a new investment fund for Aave's administration token, AAVE, according to an October 3 announcement.
The Greyscale Aave Trust will provide investors with exposure to AAVE, the governance token for the Aave platform, Greyscale said.
The fund, available only to qualified investors, will be added to Greyscale's portfolio of single-asset crypto investment products. In August, Greyscale launched three trusts to invest in Sky (formerly MakerDAO), Bittensor and Sui native protocol tokens.
Gray Crypto Products. Source: Grayscale
Related: Grayscale launches investment fund for MakerDAO token
Aave is a decentralized finance (DeFi) platform “designed to facilitate transparent, decentralized lending and borrowing using self-executing smart contracts instead of traditional intermediaries,” Grayscale said.
Grayscale is the world's largest crypto fund manager, with roughly $21 billion in assets under management as of Oct. 2, according to Grayscale.
It is best known for its Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs), including Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE).
Grayscale Aave Trust only invests in AAVE token. Grayscale also operates private single-asset funds for other protocol tokens such as Basic Attention Token (BAT) and Chainlink (LINK).
AAVE value over 12 months. Source: CoinMarketCap
Aave is DeFi's most popular lending protocol with nearly $12 billion in total value locked (TVL), according to Defillama.
In July, Aave tokenholders supported a proposal to reform Tokenomics by directing a portion of the protocol's revenue to AAVE stakeholders.
Ave earns its income from loan liquidity, which is secured by cryptographic collateral.
According to CoinMarketCap, the AAVE token has gained more than 110% in the last 12 months.
“Using blockchain technology and smart contracts, Aave's decentralized platform aims to facilitate lending and borrowing by eliminating intermediaries and reducing reliance on human judgment,” said Reyhaneh Sharif-Askari, head of product and research at Greyscale, in a statement.
In August, Dave Lavalle, head of global ETFs at Greyscale, predicted that the cryptocurrency ETFs market would expand to include new digital assets and various crypto indices.
“We're going to see a lot more single-asset products and of course some index-based and diversified products,” Lavalle said.
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