Overview
- Grayscale filed an S-1 with the U.S. Securities and Exchange Commission to convert its closed-end AAVE trust into a spot exchange-traded fund, with approval pending.
- The proposed ETF would hold AAVE directly and track the token’s market price, and the shares are intended to list on NYSE Arca if approved.
- The sponsor fee is set at 2.5% of net asset value and would be paid in AAVE rather than cash, according to the filing.
- Coinbase is named as both custodian and prime broker for the proposed product.
- Rival issuers are pursuing similar offerings, including a prior AAVE-focused filing from Bitwise, and AAVE rose about 9% to roughly $119 with a market value near $1.8 billion at the time of the news.