It’s important to distinguish between a Trust (like the existing Grayscale Aave Trust) and a Spot ETF. Approval Status: As of today, February 21, 2026, while the SEC has opened the doors for Bitcoin and Ethereum, they remain more cautious with DeFi tokens due to questions around decentralized governance and underlying liquidity. The "Fee" Mechanism: Usually, ETF management fees are deducted from the Net Asset Value (NAV), meaning the fund sells a small portion of the asset to cover costs. A "buy-and-burn" or "buy pressure" mechanism via fees would be a revolutionary (and legally complex) structure for a standard SEC-approved ETF. 📊 Technical & Market Outlook You’re spot on about the price levels. Aave has historically shown high sensitivity to institutional news.🦋 Why the "Butterfly" Matters Aave isn't just a lending protocol; it's the liquidity backbone of DeFi. If a Spot ETF is approved, it wouldn't just be about the price—it would be a massive validation of smart contract-based lending over traditional banking models. My Take: The "suit-and-tie" money is definitely looking for yield, and Aave is the most battle-tested venue for it. However, the road to a Spot ETF is often paved with regulatory delays and "sell the news" events. Keeping an eye on the Aave Governance votes is just as important as watching the SEC filings.
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MasterChuTheOldDemonMasterChu
· 1m ago
Happy New Year 🧨
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Falcon_Official
· 7m ago
Wishing you great wealth in the Year of the Horse 🐴
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Luna_Star
· 40m ago
2026 GOGOGO 👊
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EagleEye
· 59m ago
"Year of the Horse Wealth Score"
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ShizukaKazu
· 1h ago
Wishing you great wealth in the Year of the Horse 🐴
#GateSquare$50KRedPacketGiveaway 🏛️ The Reality Check: ETF vs. Trust
It’s important to distinguish between a Trust (like the existing Grayscale Aave Trust) and a Spot ETF.
Approval Status: As of today, February 21, 2026, while the SEC has opened the doors for Bitcoin and Ethereum, they remain more cautious with DeFi tokens due to questions around decentralized governance and underlying liquidity.
The "Fee" Mechanism: Usually, ETF management fees are deducted from the Net Asset Value (NAV), meaning the fund sells a small portion of the asset to cover costs. A "buy-and-burn" or "buy pressure" mechanism via fees would be a revolutionary (and legally complex) structure for a standard SEC-approved ETF.
📊 Technical & Market Outlook
You’re spot on about the price levels. Aave has historically shown high sensitivity to institutional news.🦋 Why the "Butterfly" Matters
Aave isn't just a lending protocol; it's the liquidity backbone of DeFi. If a Spot ETF is approved, it wouldn't just be about the price—it would be a massive validation of smart contract-based lending over traditional banking models.
My Take: The "suit-and-tie" money is definitely looking for yield, and Aave is the most battle-tested venue for it. However, the road to a Spot ETF is often paved with regulatory delays and "sell the news" events. Keeping an eye on the Aave Governance votes is just as important as watching the SEC filings.