Grayscale expands Trust Fund with launch of AAVE

• Grayscale has announced the launch of its single-asset trust fund AAVE.
• The AAVE Trust will only be available to eligible clients and provides exposure to the AAVE price.
• AAVE fell 4% after the announcement.

Aave (AAVE) fell 4% on Thursday after asset manager Grayscale announced the launch of a new digital asset fund that provides exposure to the price of the decentralized financial token Ethereum.

AAVE declined despite Grayscale Trust Fund launch

In an announcement on its X account, asset manager Grayscale revealed the latest trust fund for the native AAVE token of the Aave protocol.

The Grayscale AAVE Trust is a single asset investment product that provides clients with exposure to the price of AAVE and will only be available to eligible investors.

Aave is a DeFi protocol on the Ethereum blockchain that allows users to borrow and lend cryptocurrencies without intermediaries.

Aave Trust is now open for daily subscription to eligible individual and institutional accredited investors. It will also work similarly to other grayscale single asset investment trusts.

“Grayscale Aave Trust gives investors exposure to a protocol with the potential to revolutionize traditional finance,” said the company’s head of product and research, Rayhaneh Sharif-Askary.

Grayscale’s AAVE product follows the asset manager’s recent launch of a series of digital asset funds in recent months.

The list includes Avalanche (AVAX), Sui (SUI) and Bittensor (TAO) Trust, which Grayscale launched in the last two months.

Following the announcement, AAVE fell 4% in the past 24 hours, extending its weekly loss to 17%. The DeFi token has seen a week-long decline despite growing momentum following its V3 update — the V3 platform hit a total of $10 billion locked in on Tuesday.

Aave Labs also announced that its users can now start providing and lending USDS, the native stablecoin of Sky Ecosystem (formerly MakerDAO), on the V3 platform.