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Aave Price Recovers As Grayscale Launches Aave Trust

Published

5 hours ago

October 3, 2024

AAVE Price has recovered following Grayscale’s announcement of the launch of its Grayscale Aave Trust. This fund will provide institutional investors exposure to the decentralized finance (DeFi) token. This is significant as it provides a huge boost in the token’s adoption, which could lead to more price surges in the long term.

AAVE Price Recovers Following Launch Of Grayscale Aave Trust

The top DeFi coin rose above the $140 price mark on the back of Grayscale’s announcement of the launch of its Aave Trust. AAVE price had dropped to as low as $135 following a wave of crypto market sell-off. However, this recent development has provided a spark for the token, with a price recovery already on the horizon.

Grayscale announced in a press release the creation and public launch of its Aave Trust. The trust will offer investors the opportunity to gain exposure to AAVE, which is the governance token of the DeFi platform Aave.

Speaking on the development, Grayscale’s Head of Product and Research Rayhaneh Sharif-Askary said,

Grayscale Aave Trust gives investors exposure to a protocol with the potential to revolutionize traditional finance.

He added,

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.”

What To Know About The Trust

Grayscale also announced that the trust is now open for daily subscription by eligible individual and institutional accredited investors. The Grayscale Aave Trust will be similar to all other Grayscale closed-end single asset-investment trusts. Therefore, it is solely invested in the AAVE token rather than a basket of assets.

According to the Grayscale website, the net asset value (NAV) per share is currently $13.88. Meanwhile, the fund has $151,281 in assets under management (AuM).

Grayscale continues to lead the way in offering crypto investment products, as it now offers more than 20 crypto funds. This includes its Spot Bitcoin and Ethereum ETFs, which originally began as closed-end funds before being converted to Spot ETFs.

Therefore, there is the possibility that the Aave Trust could become an ETF at some point, which would provide more bullish momentum for the AAVE price. However, there would need to be regulatory clarity in the US for that to happen, considering how the US Securities and Exchange (SEC) continues to question the legal status of different crypto tokens.

At the time of writing, the AAVE price is trading at around $141, up almost 2% in the last 24 hours. Trading volume has also surged, with $316 million traded during this period.