Key Insights:
- Grayscale filed Form S-1 to convert its Aave Trust into spot ETF.
- Proposed AAVE ETF sets 2.5% fee paid directly in Aave tokens.
- Coinbase will provide custody as fund targets NYSE Arca listing.
Grayscale has submitted a Form S-1 registration statement to the U.S. Securities and Exchange Commission for a proposed AAVE ETF. The filing was made on February 13, 2026, and accepted the same day at 16:48:32 Eastern Time under Accession No. 0001193125-26-051643. The application seeks to convert the existing Grayscale Aave Trust into a spot exchange-traded fund.
The registrant appears as Grayscale Aave Trust (AAVE), organized in Delaware. The document states that shares may be offered “as soon as practicable after the effective date of this Registration Statement.” The trust is listed as a non-accelerated filer, emerging growth company, and smaller reporting company.
Fund Structure and Listing Plan
The proposed ETF will hold Aave tokens and track their market value. Grayscale set the management fee at 2.5% of net asset value. The fee will be paid in Aave tokens.
Coinbase will serve as custodian and provide prime brokerage services. The fund aims to list its shares on NYSE Arca. The filing names Edward McGee, Chief Financial Officer of Grayscale Investments Sponsors, LLC, as the agent for service.
Market Position and Industry Activity
Grayscale’s filing follows similar moves by other asset managers. Bitwise submitted applications in December for several digital asset funds that include Aave exposure. The filings signal growing interest in exchange-traded products tied to decentralized finance tokens.
Aave operates as a decentralized lending protocol within the digital asset market. Recent data show the token trading near $119, up about 9% on the day referenced. Its market capitalization stands near $1.8 billion. The token reached an all-time high of $661.69 in April 2021.
Regulatory Review Process
The S-1 filing starts the formal review process with the SEC. The fund cannot launch until the registration statement becomes effective. The document contains standard disclosures required under the Securities Act of 1933.
The filing notes that the offering will begin after regulatory clearance. The SEC has not released a timeline for its decision.
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