Grayscale Investments Launches Aave Trust Targeting Accredited Investors

Grayscale Investments has launched the Grayscale Aave Trust, offering accredited investors a new way to gain exposure to AAVE, the native token of Aave.

Accredited investors can now gain exposure to AAVE, the native token of decentralized lending platform Aave, through a new trust launched by Grayscale Investments.

This trust from Grayscale allows investors to indirectly gain exposure to Aave’s lending protocol, which has become the largest in the decentralized finance (DeFi) sector by total value locked (TVL). The trust is designed to track the performance of AAVE (AAVE) tokens, and it functions similarly to Grayscale's other single-asset investment trusts.

Aave is a decentralized lending platform that enables users to borrow and lend cryptocurrency without the involvement of intermediaries such as banks. It is built on the Ethereum (ETH) blockchain and utilizes smart contracts, which are automated programs that execute transactions based on predefined conditions. This setup eliminates the need for credit checks, making borrowing more accessible.

According to the press release, the firm's private placements, which include the Aave Trust, are only available to accredited investors via a daily subscription.

Aave's platform is designed to be transparent and impartial, facilitating the lending and borrowing of crypto assets with minimal human involvement. At the time of writing, AAVE is trading at $140.90.

Grayscale has been expanding its offerings of crypto-asset trusts, catering to the growing demand for exposure to digital currencies. Recently, the firm launched the XRP Trust on Sept. 12, offering investors exposure to XRP (XRP), the token used on the XRP Ledger. Prior to that, Grayscale also announced its Sui (SUI) Trust on Sept. 11.

“Aave's decentralized approach has the potential to change finance by eliminating intermediaries and human bias. 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.”

Rayhaneh Sharif-AskaryGrayscale Head of Product & Research.“Aave's decentralized approach has the potential to change finance by eliminating intermediaries and human bias. 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.”

Rayhaneh Sharif-Askary Grayscale Head of Product & Research

In August, AVAX (AVAX), the native token of blockchain network Avalanche, surged 12% after Grayscale launched its Avalanche Trust. This launch signaled a potential trend reversal following a prolonged decline, with the token recovering 48% in two weeks after hitting a nine-month low.