Grayscale Investments has taken another step in its push to expand regulated crypto investment products, filing a Form S-1 with the U.S. Securities and Exchange Commission on February 13, 2026.
- Grayscale filed to convert its Aave Trust into a spot ETF with the U.S. SEC, aiming to list it on NYSE Arca.
- The fund would charge a 2.5% fee, with Coinbase acting as custodian and broker.
- The ETF structure is designed to reduce discounts and better track AAVE’s price.
- The move comes as competition heats up, with Bitwise also pursuing an AAVE ETF.
The filing seeks approval to convert the Grayscale Aave Trust, currently structured as a closed-ended vehicle, into a spot exchange-traded fund.
If approved, the proposed ETF would list on NYSE Arca, marking another milestone in Grayscale’s broader plan to transition its single-asset crypto trusts into exchange-listed products with improved liquidity and price efficiency.
Key Details From the Filing
The fund plans to charge a 2.5% sponsor fee based on net asset value, payable in AAVE tokens. Coinbase is expected to serve as both custodian and primary broker, reinforcing its growing role as infrastructure provider for U.S.-listed crypto ETFs.
The SEC formally accepted the registration statement under Accession No. 0001193125-26-051643, placing the application into the regulatory review pipeline.
As of February 2026, the Grayscale Aave Trust manages roughly $858,597 in assets, with a net asset value per share of $11.04. While relatively small compared to Grayscale’s flagship Bitcoin and Ethereum products, the filing signals continued institutional interest in expanding exposure to decentralized finance protocols.
ETF Structure Designed to Reduce Discount Risk
Grayscale’s transition to an ETF format would allow in-kind creations and redemptions – a structural shift aimed at tightening the relationship between the fund’s market price and its underlying holdings. Closed-ended trusts have historically traded at steep premiums or discounts, particularly during volatile market cycles.
The ETF model is designed to reduce those pricing inefficiencies by enabling authorized participants to arbitrage price gaps more effectively.
Competition in the AAVE ETF Race
The filing follows a similar application from Bitwise in December 2025, signaling growing competition among issuers targeting single-asset altcoin ETFs.
The Aave proposal also aligns with Grayscale’s recent push into other alternative crypto products. The firm has submitted ETF filings tied to NEAR (January 20, 2026), BNB (January 23, 2026), and Avalanche (August 2025), underscoring its strategy to broaden its lineup beyond Bitcoin and Ethereum.
As regulatory clarity around digital assets continues to evolve, Grayscale appears determined to position itself at the center of the next wave of crypto-based exchange-traded products. Whether the SEC will approve another spot altcoin ETF remains one of the key questions shaping the 2026 digital asset landscape.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/grayscale-files-for-spot-aave-etf-on-nyse-arca/
