The Bitwise Aave Strategy ETF is a pending crypto strategy fund targeting Aave (AAVE), the governance token of one of the largest decentralized lending protocols. Filed with the SEC in December 2025, this application seeks exposure to a cornerstone DeFi protocol with billions in total value locked. Aave pioneered features like flash loans and has become a leading platform for decentralized borrowing and lending.

The fund utilizes the strategy ETF model, investing up to 60% of assets directly in AAVE tokens while allocating the remainder to related exchange-traded products and derivatives. This structure provides flexibility in managing exposure to Aave's DeFi ecosystem. The approach allows investors to participate in protocol governance and value accrual without directly interacting with smart contracts or managing crypto custody.

Pending SEC approval, this ETF would offer institutional investors regulated access to a top-tier DeFi protocol token. The filing reflects asset managers' recognition of Aave's established position in decentralized finance. If approved, it would be among the first U.S. ETFs providing direct exposure to DeFi lending protocol governance tokens.