Grayscale launches Grayscale Aave Trust to invest in the largest lending and borrowing platform, Aave

Grayscale Investments has launched a new investment fund focused on the AAVE token. This fund, known as the Grayscale Aave Trust, provides investors with exposure to AAVE, the governance token for the Aave platform. This move is part of Grayscale’s strategy to expand its investment offerings in the decentralized finance (DeFi) space.

The Aave protocol allows users to lend and borrow cryptocurrencies without traditional financial intermediaries, using smart contracts to facilitate these transactions. This new fund aims to make it easier for investors to gain exposure to AAVE without the complexities of directly managing the token.

Grayscale on X: "We are proud to announce the creation of a new single-asset crypto investment fund, Grayscale $AAVE Trust, which will be available through private placement. Available to eligible accredited investors.

Oct. 3 2024, Grayscale Investments, a leading asset management firm specializing in cryptocurrency investments, has announced the launch of its latest product, the Grayscale Aave Trust ("the Trust"). This new investment vehicle aims to provide investors with exposure to AAVE, the governance token of the Aave decentralized finance (DeFi) platform.

Aave is a well-known DeFi platform that facilitates borrowing and lending through blockchain-based smart contracts rather than traditional intermediaries. This innovative approach removes the need for credit scores, IDs, or background checks, offering a more transparent and accessible system for lending and borrowing. The Grayscale Aave Trust allows accredited investors to gain exposure to Aave’s native token, AAVE, which underpins the platform's operations and governance.

Rayhaneh Sharif-Askary, Grayscale's Head of Product & Research, commented, "Grayscale Aave Trust gives investors exposure to a protocol with the potential to revolutionize traditional finance. By leveraging blockchain technology and smart contracts, Aave's decentralized platform aims to optimize lending and borrowing while removing intermediaries and reducing reliance on human judgment."

The Trust is now open for daily subscription to eligible individual and institutional accredited investors. It functions similarly to Grayscale’s other single-asset investment trusts and invests solely in AAVE. Accredited investors as defined under the Securities Act of 1933, including those with an annual income exceeding $200,000 or a net worth over $1 million, can participate in the Trust.

The Aave platform, launched in 2017, features mechanisms such as aTokens and flash loans, which provide liquidity in decentralized finance.

Grayscale Investments, established in 2013, has developed a range of products providing investors with diverse opportunities in the crypto economy.

Aave ranking is 38^th largest crypto by market cap. It has a market cap of $2.16 billion. Aave is the largest lending and borrowing platform. It has $11.654 billion in total value locked (TVL).