Grayscale expands Trust Fund with AAVE launch

• Grayscale announced the launch of its AAVE single-asset Trust fund.
• The AAVE Trust will be available only to eligible customers and offers exposure to AAVE's price.
• AAVE is down 4% following the announcement.

Aave (AAVE) declined 4% on Thursday after asset manager Grayscale announced the launch of a new digital asset fund, offering exposure to the price of the Ethereum decentralized finance token.

AAVE down despite launch of Grayscale Trust Fund

In an announcement on its X account, asset manager Grayscale unveiled its latest Trust Fund for the Aave protocol's native token AAVE.

The Grayscale AAVE Trust is a single-asset investment product that gives customers exposure to the price of AAVE and will only be available to eligible investors.

Aave is a DeFi protocol on the Ethereum blockchain that allows users to lend and borrow cryptocurrencies without intermediaries.

The Aave Trust is now open for daily subscription to eligible individual and institutional accredited investors. It will also function similarly to other Grayscale single-asset investment trusts.

"Grayscale Aave Trust gives investors exposure to a protocol with the potential to revolutionize traditional finance," said the company's Head of Product & Research, Rayhaneh Sharif-Askary

Grayscale's AAVE product follows the asset manager's recent launch of a series of digital asset funds in the past few months.

The list includes Avalanche (AVAX), Sui (SUI) and Bittensor (TAO) Trust, which Grayscale launched within the last two months.

Following the announcement, AAVE is down 4% in the past 24 hours, stretching its weekly loss to 17%. The DeFi token has been on a week-long decline despite growing momentum following its V3 upgrade — the V3 platform hit $10 billion in total value locked on Tuesday.

Aave Labs also announced that its users can now begin to supply and borrow USDS, Sky Ecosystem (formerly MakerDAO) native stablecoin, on the V3 platform.