Asset management firm Grayscale has announced the launch of a new fund, offering exposure to Aave’s AAVE token, as the firm expands its cryptocurrency product portfolio.

Aave is a decentralized lending platform based on the Ethereum blockchain that allows users to borrow cryptocurrency automatically using the tokens they own as collateral, while also lending out crypto to earn interest. Although Aave’s native token has a market capitalization of $2.3 billion — a modest figure compared to many other popular tokens — the protocol has become the largest crypto lending platform by total value locked (TVL) at $11.6 billion, according to data from DeFiLlama.

Source: Defillama

Rayhaneh Sharif-Askary, Director of Product and Research at Grayscale, said:

“Grayscale Aave Trust gives investors access to a protocol that has the potential to revolutionize traditional finance.”

He emphasized that “by leveraging blockchain technology and smart contracts, Aave’s decentralized platform aims to optimize the lending and borrowing process, while eliminating the need for intermediaries and minimizing reliance on human judgment.”

The launch of the AAVE fund comes just weeks after Grayscale introduced the Grayscale Avalanche Trust, which gives investors access to the AVAX token. Grayscale currently offers more than 20 different cryptocurrency investment products, which grew after the launch of spot Bitcoin ETFs in January, which sparked interest in publicly tradable crypto-related products. Grayscale is also the issuer of the Grayscale Bitcoin Trust (GBTC), Grayscale Mini Bitcoin Trust (BTC), and Grayscale Ethereum Trust (ETHE), all of which were introduced earlier this year.

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