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SEC Begins Review of Grayscale’s Aave ETF, Setting Up a Race With Bitwise

The outcome will signal how regulators view single-asset DeFi funds.

Overview

  • Grayscale filed to convert its Aave trust into a spot ETF that would list on NYSE Arca under the ticker GAVE.
  • The proposed fund would hold AAVE directly, charge a 2.5% sponsor fee paid in AAVE, and use Coinbase as custodian and prime broker.
  • Bitwise is pursuing a competing Aave product that targets up to 60% in AAVE tokens with the balance in related securities.
  • Following the filings, derivatives open interest jumped from about $153 million to roughly $237 million as AAVE rose more than 22% to near $128, according to CoinGlass data cited in reports.
  • On-chain activity strengthened, with weekly active addresses returning to late-2024 and early-2025 levels, per Token Terminal figures referenced in coverage.