Grayscale Investments adds Aave Trust to its suit of crypto products

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Grayscale today announced that it is launching the Grayscale Aave Trust, a new investment product that gives investors access to AAVE, the governance token for the Aave platform.

The AAVE token is on Grayscale’s list of the top 20 tokens expected to excel this quarter. The list also includes Sui (SUI) and Bittensor (TAO), for which Grayscale just released trust products in August, namely Grayscale Sui Trust and Grayscale Bittensor Trust.

Grayscale believes Aave has the potential to revolutionize traditional finance by leveraging blockchain technology and smart contracts.

“Grayscale Aave Trust gives investors exposure to a protocol with the potential to revolutionize traditional finance,” said Rayhaneh Sharif-Askary, Grayscale’s head of product and research. “By leveraging blockchain technology and smart contracts, Aave’s decentralized platform aims to optimize lending and borrowing while removing middlemen and reducing reliance on human judgment.

Grayscale is known for its diverse range of crypto investment products. Aave Trust follows the debut of numerous single-asset investment trusts earlier this year, including Avalanche Trust, Near Trust, Stacks Trust and XRP Trust.

Aave Trust is now open for daily subscription to eligible individual and institutional accredited investors. It works similarly to Grayscale’s other single asset investment trusts.

Grayscale’s Aave Trust was launched on the back of the strong growth of Aave V3. According to data from DefiLlama, Aave V3’s total locked value has surpassed $8.9 billion on Ethereum, up more than 160% from around $3.3 billion at the start of the year.

Aave V3 has several key enhancements to improve the functionality and user experience of Aave. New features such as isolation mode and high efficiency mode help users optimize the use of capital while reducing risk by limiting exposure to less liquid assets. In addition, cross-chain functionality allows liquidity to flow between different Aave markets through different networks, enhancing interoperability.

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