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 (AAVE) has seen its price rise following the announcement by Grayscale of the launch of its Grayscale Aave Trust. This fund will provide institutional investors with exposure to the decentralized finance (DeFi) token. This move is set to boost the token’s adoption massively, potentially leading to further price surges in the long term.

AAVE Price Rises As Grayscale Launches Aave TrustThe top DeFi coin experienced a surge in price, rising above the $140 mark after Grayscale announced the launch of its Aave Trust. AAVE price had earlier dropped to as low as $135 amid a wave of sell-off in the crypto market. However, this recent development has sparked a recovery, with a price increase already being observed.

Grayscale announced in a press release on Monday the creation and public launch of its Aave Trust. This 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,

“The Grayscale Aave Trust provides investors with exposure to a protocol that has the potential to revolutionize traditional finance.”

She 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.”

Here’s What To Know About The TrustGrayscale 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. As such, it is fully invested in the AAVE token and not 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 is notably the leading provider of crypto investment products, offering over 20 crypto funds. This includes its Spot Bitcoin and Ethereum ETFs, which began as closed-end funds before being converted to Spot ETFs.

Hence, there is a possibility that the Aave Trust could become an ETF at some point, which would provide more bullish momentum for the AAVE price. However, this would require regulatory clarity in the US, considering how the SEC continues to question the legal status of various 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 being traded during this period.

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