Grayscale Investments, the biggest Asset Manager globally, has introduced a new investment fund focusing on Aave’s governance token AAVE. This has resulted in AAVE price change as well.
The Grayscale Aave Trust is intended to offer qualified investors access to AAVE. This new fund comes at the back of Grayscale’s growing suite of single-asset investment products. It recently welcomed three new trusts in August.
Aave, also known as the Ethereum-based lending pool, provides lending and borrowing services using smart contracts. The protocol now supports over $12 billion in total value locked (TVL). This makes it the king of DeFi lending services.
Grayscale’s new trust is an example of rising demand for financial products. Products that are built on the decentralized blockchain system and providing clear and automated solutions.
AAVE Price Soars as Grayscale Expands Portfolio
The Grayscale Aave Trust expands Grayscale’s efforts to provide single-asset exposure to crypto investment. AAVE price has been on a roll in the past year. AAVE price rose more than 110%, and it has had a recent 2.10% boost to $141.95.
The new trust is dedicated exclusively to AAVE. It is in line with other token-based products Grayscale offers, including Basic Attention Token and Chainlink.
Grayscale is a company that provides several crypto products. As the market for cryptocurrencies is slowly developing, Grayscale is expanding its product line. In August, it launched trusts for Sky, Bittensor, and Sui, expanding Grayscale’s portfolio.
The company is also in charge of some of the biggest crypto exchange-traded funds (ETFs). ETFs such as Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE).
The Aave protocol earns revenue by liquidating the assets of loans that are securitized using cryptocurrencies. This stream of income, in combination with the newly approved tokenomics change by AAVE token owners prepares Aave for further development.
Among the changes is a feature that allocates some of the protocol’s revenue to AAVE depositors, thus raising the value of the token.
Grayscale Aave Trust Draws Institutional Interest
This new action by Grayscale shows that institutions are growing interested in decentralized finance and cryptocurrencies. The Grayscale Aave Trust provides an easy way for quality investors to invest in AAVE. As well as, not have to go through the tiresomeness of managing or owning the token.
This is not the first time because, according to Grayscale’s global head of ETFs, Dave LaValle, there are better days ahead for the ETF market. That would come with more diversified and index-based products. Grayscale had total assets under its management at around $21 billion by October 2, 2024.
The Aave Trust is Grayscale’s newest product. It’s an effort to bring more institutional money into the already emerging digital asset market. From what LaValle has said, it would appear that the company plans to launch diversified products in the near future.
