Grayscale Files S-1 for Potential AAVE Spot ETF Grayscale Investments has quietly submitted an S-1 registration with the U.S. Securities and Exchange Commission for a spot AAVE exchange-traded fund, according to recent regulatory filings. The filing signals that the largest digital-asset manager is exploring a new product tied to the governance token of the AAVE protocol. The move comes as AAVE — a leading decentralized finance (DeFi) lending protocol — has been in the spotlight following a governance vote that would further decentralize its operational structure. Reports say the proposal won community backing, underscoring growing on-chain governance activity around the protocol and its token. Grayscale has not disclosed details about the proposed ETF’s structure or timing. The firm manages billions in crypto assets and has a history of pursuing ETF and other regulated investment products; some of its spot crypto ETF efforts have received SEC approval in recent years. Why it matters: An AAVE spot ETF would give traditional investors direct exposure to the AAVE token via a familiar, regulated vehicle, potentially widening access beyond crypto-native exchanges and wallets. For AAVE, increased institutional exposure could influence liquidity and governance dynamics — though any market impact will depend on the ETF’s size and investor demand. Next steps: An S-1 is the formal registration step with the SEC; the clock now starts for the agency’s review process. Grayscale’s lack of timing specifics means investors will be watching closely for further filings or announcements. We’ll keep tracking the SEC filing and any updates from Grayscale and the AAVE community. Read more AI-generated news on: undefined/news

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