Asset manager Grayscale sought the U.S. Securities and Exchange Commission’s (SEC) approval to convert its Aave trust fund into exchange-traded products. This event comes at a crucial time when the Aave prices are about to break out from a falling wedge.
On Friday, asset manager Grayscale filed an S1 registration statement with the U.S. SEC requesting its approval to convert the Aave trust fund to an ETF with a new name. Grayscale had plans of listing on the New York Stock Exchange Arca, under a new ticker symbol, ‘GAVE.’ Furthermore, it will charge a 2.5% fee, and Coinbase will serve as both its custodian and prime broker.
Converting crypto trust to ETF could add investor confidence
Converting cryptocurrencies to ETFs gives investors confidence, and it shows that the fund operates under a legal framework, reducing concerns about trust, custody, and fraud compared with unregulated crypto trusts.
Not only does it make it legitimate, but it also gives more exposure. For instance, many pension funds, retirement accounts, and mutual funds are restricted from buying crypto directly; however, they are not restricted from buying ETFs.
In addition, ETFs are tradable on traditional stock exchanges, so more investors can participate without dealing with wallets or exchanges or other sophisticated procedures. ETFs are bought and sold like stocks, meaning investors can enter and exit positions more easily.
Aave may begin its journey to $200
Meanwhile, the Aave prices are about to break out from the falling wedge. Since July 2025, the AAVE token has been making lower lows and lower highs within the falling wedge, as traders have been selling the token amid geopolitical uncertainty. Although the prices have been crashing, the falling wedge pattern has a bullish breakout.
Now that the falling wedge pattern is nearing completion, the breakout could happen at any moment. When Aave breaks out of the wedge, it will be first obstructed by the 50-day moving average at $142.
But it should eventually break above this hurdle, as a conventional breakout from a wedge should spike as high as the falling wedge at its widest. Given that a textbook-style breakout happens, Aave will test and break the 200-day MA at $194 and then go past the $200 psychological resistance level.
