Grayscale has submitted a filing with the U.S. Securities and Exchange Commission (SEC) to turn its AAVE token trust into an exchange-traded fund (ETF).
The firm intends to trade the ETF on the Arca of the NYSE.
This is a filing, which was submitted on February 13, 2026, as a follow-up on the application submitted by Bitwise, which was the first of its kind seeking to have an AAVE ETF approved.
Bitwise wins AAEE ETF race
Bitwise, which is a notable competitor in the crypto asset management industry, outdid Grayscale by filing its AAVE ETF proposal in December 2025.
Bitwise submitted the paperwork on 11 different funds at the time, which would make it a pioneer in the growth of crypto-related ETFs.
Even though Grayscale was late to file, the move by the company indicates that it is committed to being competitive in the constantly changing cryptocurrency market.
AAVE’s market position and investor interest
AAVE is the native token of the Aave protocol, a major participant in the area of decentralized finance (DeFi).
The protocol enables borrowing and lending of crypto assets.
The market capitalization of AAVE is around 1.8 billion, which makes it a major token in the crypto space.
The token price currently stands at 119.02, which is 4.87% higher than the price in the past 24 hours.
Although that has increased lately, AAVE hit its highest point in April 2021 of $661.69.
Analysts opine that the frenzied popularity of AAVE among investors is driving the popularity of associated financial products.
Presently, the European markets have investment products such as the 21Shares AAVE ETP and the Global X AAVE ETP.
The introduction of this AAVE ETF by Grayscale aims to record this increased investor popularity, which is a substantial achievement in the history of the token.
Grayscale’s ETF strategy and expansion plans
Grayscale has the record of transforming closed-ended trusts into ETFs.
The legal case the firm won against the SEC concerning its Bitcoin Trust in the past removed the pavement to other ETFs on spot bitcoin in the United States.
The suggested Grayscale AAVE ETF will have a 2.5% sponsor fee, in terms of the net asset value, which will be paid in AAVE tokens.
The company also plans to employ Coinbase as a prime broker and custodian, which will further enhance the company’s infrastructure.
Also, Grayscale has stated that it plans to change the NEAR Trust into an ETF.
The move comes after it filed a Form S-1 with the SEC in January 2026.
NEAR Trust offers the institutional investors indirect access to the NEAR Protocol token.
In line with this, Grayscale will transition NEAR Trust out of over-the-counter markets and onto NYSE Arca with the purpose of enhancing access and liquidity.
The fact that Grayscale has registered to change its AAVE Trust to an ETF indicates how the company continues to keep up with the competition in the cryptocurrency world.
Grayscale is striving to increase its crypto products and keep its leadership in the digital asset management market, which is being led by Bitwise.
The proposal of the AAVE ETF is a ground-breaking move in the Grayscale mission, which is larger, giving the company innovative investment solutions to an area of the DeFi sphere that is thriving.
The post Grayscale Files to Convert AAVE Trust into US ETF first appeared on Coinfea.
