Grayscale Investments has said that they will be starting a new investment fund just for AAVE’s governance token. This fund, which started on October 3, wants to give qualified buyers the chance to invest in AAVE. This will add to Grayscale’s selection of single-asset bitcoin investments.
In addition to trusts for other digital assets like Sky, Bittensor, and Sui, Grayscale also offers the Aave Trust, which is solely focused on AAVE. The Aave platform is a decentralized finance (DeFi) system that lets people borrow and give cryptocurrency through smart contracts, which get rid of the need for standard middlemen.
As of October 2, Grayscale, the biggest crypto fund manager in the world, was in charge of about $21 billion in assets. The company is best known for its exchange-traded funds for Bitcoin and Ethereum, such as the Grayscale Bitcoin Trust and the Grayscale Ethereum Trust.
At the moment, Aave is the best loan protocol in the DeFi market, with a total value of almost $12 billion locked in. Recently, holders of the Aave token decided to improve the tokenomics by giving AAVE stakers a share of the platform’s profits. This has helped the token grow very quickly. The value of AAVE has grown by more than 110% in the past year.
Grayscale’s head of product and research, Rayhaneh Sharif-Askary, talked about the benefits of Aave’s decentralized model. This model aims to improve loans and borrowing through blockchain technology, cutting down on the need for middlemen.
Dave LaValle, who is the global head of ETFs at Grayscale, is optimistic about the future of cryptocurrency ETFs. He thinks that the market will grow to include more types of digital assets and diverse crypto indexes. He said that along with index-based products, there might be room for more single-asset products, which is a good sign for bitcoin purchases.
