- Grayscale announces Aave Trust, which expands DeFi investing options.
- AAVE’s price is showing indications of revival, fueled by institutional interest.
Grayscale has announced the creation of the Grayscale Aave Trust, a cryptocurrency investment fund dedicated to the Aave decentralized finance (DeFi) lending protocol. According to a statement issued on October 3, this fund intends to give authorized individual and institutional investors with direct exposure to AAVE, the Aave platform’s native token.
Following the statement, AAVE rose 8.58% in the last hour, reaching $148, despite falling by more than 16% in the previous week. The Aave Trust is marketed as one of the first securities fully invested in and derived value from AAVE, allowing investors to obtain exposure to the token without the hassles of purchasing, keeping, and securing it directly. The Trust currently has around $150,000 in assets, according to its official website.
Aave’s Leading Status in DeFi
Aave is an Ethereum-based decentralized lending platform that offers automatic crypto loans guaranteed by other tokens as collateral. It allows users to lend their valuables while earning income. Aave, the largest lending protocol by total value locked (TVL), presently has approximately $20 billion locked in its system, according to DeFiLlama data. Aave generated more than $1 million in fees in the last 24 hours, exceeding large blockchain networks such as Binance Smart Chain and Cardano, according to CryptoFees data.
Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary, believes that the Aave Trust has the potential to disrupt traditional finance. She emphasized that Aave’s decentralized model improves lending and borrowing processes by leveraging blockchain and smart contracts, hence decreasing intermediaries and human participation. Aave’s decentralized platform, which uses blockchain technology and smart contracts, attempts to maximize lending and borrowing while eliminating intermediaries and minimizing reliance on human judgment. She explained.
This launch comes after Grayscale introduced its XRP Trust less than a month ago. According to CoinGlass data, the company now administers trusts for more than 20 digital assets, including Solana, Litecoin, Chainlink, and ZCash, for a total asset value of about $7 billion.
