Grayscale has filed with the U.S. Securities and Exchange Commission to convert its Aave Trust into an exchange-traded fund (ETF), aiming to list it on NYSE Arca under the ticker GAVE. The filing, submitted on February 13, 2026, proposes a direct holding of AAVE tokens, with Coinbase as custodian and prime broker. This move positions Grayscale as the second U.S. firm seeking an AAVE-linked ETF, following Bitwise. The proposed Grayscale Aave Trust ETF would feature a 2.5% management fee and offer investors direct exposure to AAVE, a leading DeFi protocol. This contrasts with Bitwise's strategy, which combines token holdings with traditional securities. The ETF could enhance liquidity and price discovery for AAVE, reflecting a growing interest in regulated DeFi investment products.