Grayscale has taken another step toward expanding crypto investment products in the US, filing to convert its existing Aave trust into an exchange-traded fund listed on a major stock exchange.

The move matters because it signals renewed institutional interest in altcoins beyond Bitcoin and Ethereum, even as the broader crypto market remains under pressure.

What Grayscale Filed and What Changes

On Friday, Grayscale submitted a Form S-1 registration statement to the US Securities and Exchange Commission seeking approval to convert its Aave trust into the Grayscale Aave Trust ETF.

If approved, the fund would list on NYSE Arca under the ticker GAVE, charge a 2.5 percent management fee, and rely on Coinbase as both custodian and prime broker.

Unlike strategy-based products, the ETF would hold AAVE tokens directly, offering spot exposure to the decentralized finance protocol.

Context: Why Aave Matters to Institutions

Aave is the largest decentralized finance platform by total value locked, with more than $27 billion locked across its markets, according to DefiLlama.

The protocol allows users to lend and borrow crypto across multiple blockchains, while the AAVE token plays a governance role and can be staked to earn yield. That combination of scale, revenue generation, and on-chain utility has made Aave one of the few DeFi protocols institutions consistently track.

Market Reaction Remains Muted

The filing did not trigger a sharp reaction in the AAVE token. According to CoinGecko, AAVE was down 1.6 percent over the past day, trading near $126 at the time of reporting.

The subdued response reflects how ETF filings are increasingly seen as long-term positioning rather than immediate catalysts, especially during periods of softer market sentiment.

Grayscale Joins Bitwise in the Aave ETF Race

With this filing, Grayscale becomes the second firm seeking US approval for an Aave-focused ETF, joining Bitwise.

Bitwise filed with the SEC in December to launch the Bitwise AAVE Strategy ETF, part of a broader push that also targeted altcoins such as Uniswap’s UNI and Zcash. Its proposal would allocate up to 60 percent of assets directly to AAVE tokens, with the remainder held in related securities.

Grayscale’s approach differs by aiming for full, direct exposure to AAVE rather than a blended strategy.

Investor Psychology Behind the Push

The timing suggests asset managers believe investor appetite for altcoins has not disappeared, only become more selective.

While retail participation has cooled, institutions appear focused on protocols with deep liquidity, long operating histories, and clear on-chain use cases. Aave fits that profile more closely than many smaller DeFi projects.

Global Context Adds Pressure on US Regulators

Outside the US, Aave-linked exchange-traded products already exist. 21Shares launched an Aave ETP on Nasdaq Stockholm in November, while Global X introduced a similar product in Germany in early 2023.

These overseas listings add to the pressure on US regulators as American investors seek comparable access through domestic markets.

What Comes Next

Approval is far from guaranteed, but Grayscale’s filing reinforces a broader trend. Asset managers are increasingly testing how far the ETF wrapper can be extended into decentralized finance.

If successful, Aave-focused ETFs could open a new channel of capital into DeFi, while also setting precedents for other protocol-based funds.

JPMorgan foresees a crypto market recovery in 2026, mainly driven by institutional investors. Bitcoin’s production cost dropped to $77,000 after miners’ capitulation, creating a new market equilibrium. New US legislation, such as the Clarity Act, could unlock more institutional capital. Bitcoin currently trades around $67,000, below its estimated break-even point.

JPMorgan has just released its analysis on the future of cryptos. The team of analysts led by Nikolaos Panigirtzoglou shows cautious optimism for 2026. Their central thesis is based on a recovery of capital flows, but not just any: those of institutional investors.

“We are positive in crypto markets for 2026 as we expect a further rise in the digital asset flow but more led by institutional investors“, says the report published Monday.

This stance stands out in the current bearish climate. Bitcoin trades around $67,000, well below the estimated production cost of $77,000. Yet, the bank sees it more as an opportunity than a danger.

One detail changes the game: institutional interest holds up much better than retail engagement during this correction. Major financial players have not fled, unlike previous bear cycles. This resilience is a strong signal for what’s ahead.

The recent context bears the marks of intense capitulation. The company K33 identified conditions of extreme panic during the drop to $60,000 in early February. The daily RSI dropped to 15.9, its sixth most extreme oversold level since 2015. These technical indicators suggest the bottom has been reached.

Miner dynamics play a crucial role in JPMorgan’s analysis. Bitcoin’s production cost has dropped significantly in recent weeks following the capitulation of the least profitable operators. High-cost miners throw in the towel, which mechanically lowers the overall production cost.

The bank is betting on a self-regulation phenomenon. When activity remains sustainably below the break-even point, inefficient players leave the market. The network emerges more resilient, supported by better-capitalized operators. This “natural selection” strengthens fundamentals in the medium term.

The equation also changes relative to gold. Since October, the precious metal has largely outperformed bitcoin. However, its volatility has exploded at the same time. For JPMorgan, this situation progressively makes BTC more attractive as an alternative store of value. Bitcoin regains its relative appeal.

The regulatory factor remains the keystone. Indeed, the bank anticipates major legislative progress in the United States in 2026. The potential adoption of the Clarity Act could finally bring the clarity long awaited by institutional players. This legal certainty represents the missing link to unlock billions of dollars kept on the sidelines.

JPMorgan outlines a scenario where traditional players take over. Retail investors and specialized funds will no longer be enough to carry the next bullish wave. This shift would mark a historic turning point for the crypto industry. It remains to be seen whether Wall Street is right in this bet on institutions.

Crypto margin lending is now allowed using Bitcoin and Ether as collateral for qualified customers.

Perpetual contracts are available only to professional investors on licensed platforms.

Stablecoin licenses expected in March as part of Hong Kong’s push to become a crypto hub.

Hong Kong’s financial watchdog has issued regulatory frameworks and guidance that will let licensed brokers lend money for cryptocurrency purchases and permit professional traders to access advanced digital asset products, marking a significant step in the city’s push to become a major crypto hub.

The Securities and Futures Commission announced the changes on Wednesday. The new regulations will permit authorized brokerage firms to provide financing for virtual assets to certain customers, while also creating a legal framework for perpetual contracts, a popular type of crypto derivative.

Margin lending is limited to Bitcoin and Ether

These changes are part of what officials call the “ASPIRe” program. The letters stand for Access, Safeguards, Products, Infrastructure, and Relationships. Regulators say the current stage aims to build a market suitable for institutional players, moving past earlier efforts that centered mainly on protecting everyday consumers.

The margin lending rules allow brokers to offer financing to securities margin customers who have solid credit histories. To manage the risks that come with cryptocurrency’s price swings, only Bitcoin and Ether can be used as collateral in the beginning.

The lending framework borrows heavily from existing rules for securities margin accounts. Brokers will need to follow specific requirements in three main areas:

Collateral Quality: Assets must be easy to sell and properly valued.

Prudent Haircuts: Large discounts must be applied to crypto collateral values to cushion against price drops.

Concentration Limits: Firms must avoid excessive exposure to individual customers or specific assets.

The regulator designed these crypto-specific requirements to fit within the current financial system’s oversight structure. Officials say the goal is to enable borrowing that serves a market purpose while avoiding threats to overall financial stability.

Professional investors gain access to perpetual contracts

The approval of a framework for leveraged perpetual contracts represents perhaps the biggest change. These financial products track asset prices continuously and never expire. Until now, they have been mostly available through offshore platforms operating without regulatory oversight.

By creating local rules for these instruments, the watchdog hopes to bring high-volume trading back home.

Only professional investors can access these products. The regulator chose what it calls a principles-based approach for the contracts. This puts responsibility on platforms to give clear information to users and run strong internal systems for managing risk, including tools that automatically close out losing positions.

To help build trading activity in this new market, the regulator will permit affiliates of licensed trading platforms to serve as market makers. To avoid problems where the platform benefits unfairly at customer expense, these units must operate independently and follow strict conflict-of-interest rules.

The strategy shows a clear preference for depth over breadth. Rather than allowing many different tokens, the focus stays on the two main assets, Bitcoin and Ether.

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The decision to allow affiliated market makers stands out. In traditional finance, outside firms usually provide liquidity. In digital markets, exchanges often fill this role themselves. By formalizing this through independent units, regulators are essentially taking a common crypto industry practice and adding professional standards to ensure tighter price spreads and better price discovery occur without compromising fairness.

This shift also directly challenges overseas platforms. By legitimizing perpetual contracts, which rank among the most heavily traded crypto instruments, Hong Kong is pulling back capital that previously went to unregulated venues.

This could create a cycle where regulatory safety draws in institutional money, which in turn helps reduce the volatility that originally made regulators cautious.

The new measures arrive alongside other important developments in the region’s financial technology sector:

Stablecoin Licensing: The Monetary Authority is expected to issue its first stablecoin licenses in March, providing the settlement infrastructure needed for efficient margin operations.

Regulatory Clarity: Officials plan to submit a draft law covering crypto advisory services later in 2026.

Global Compliance: To guarantee tax reporting and international cooperation, the territory is attempting to conform to the OECD’s Crypto-Asset Reporting Framework.

Stablecoin integration, professional derivatives access, and margin lending approvals all work together to provide a comprehensive digital asset market that functions with the dependability of a conventional stock exchange.

China reportedly increases funding for AI drug development, yet confirmation of state-backed allocations remains elusive, according to secondary sources like SCMP and pharma blogs, without corroborated government announcements as of January 2026.

Despite anecdotal claims, the lack of transparent government involvement questions potential impacts, leaving actual benefits to China's AI drug industry unclear while cryptocurrencies remain unaffected.

China is strengthening its role in AI drug innovations by increasing financial backing. The government has been promoting the sector, which shows promise due to its vast patient data available for analysis.

Companies like XtalPi and Deep Intelligent Pharma are pivotal in the AI drug landscape. XtalPi reported, "We've achieved 400% revenue growth to RMB 517.1 million in H1 2025 from collaborations with Pfizer and Eli Lilly," showing the impact of partnerships on their growth trajectory. There's a shift towards AI-designed compounds, with plans to utilize China's AI Plus programme. These efforts are shaping the future of pharmaceuticals.

AI-Driven Research Aims for Faster Drug Development by 2026

Industry experts reveal that AI-driven drug research could lead to faster development processes. Merck China’s president emphasizes the role of innovative AI applications in healthcare, aiming for fully AI-designed compounds by 2026.

The influence of China's AI Plus programme is reflected in its expanding patent share globally. Financial and technological advancements may accelerate the market growth, though direct connection with cryptocurrency or blockchain data remains unreported.

China Targets 70% of AI Drug Patents Globally by 2026

Previous increases in AI drug research funding lacked detailed state backing. The global trend shows China holding 70% of AI drug patents by 2026, illustrating a robust strategy compared to prior growth trends.

Insights from Cryptodailyalert suggest considerable market shifts as AI technologies improve drug discovery. Historical success in patent acquisition suggests that China's focused efforts might catalyze further advancements in pharmaceutical innovations.

Vitalik Buterin envisions a collaboration between AI and Ethereum for secure finance systems. He emphasized privacy solutions and AI agents bridging users with the blockchain. Buterin seeks innovations in Layer 2 developments within the Ethereum ecosystem.

Vitalik Buterin, one of the co-founders of Ethereum and a prominent figure in the cryptocurrency world, recently outlined his vision for the collaboration between artificial intelligence (AI) and Ethereum. Buterin emphasized that this partnership could play a significant role in creating a more secure financial infrastructure, empowering users, and fostering healthy market development.

Innovative Solutions in Privacy and Verification

Among the critical issues Buterin highlighted was privacy. He stressed the necessity for new technologies that enable users to interact securely with large language models (LLMs) without revealing their identities or personal data. His recommendations include AI software operating locally on personal devices, zero-knowledge proofs for anonymous API access, and robust cryptographic verification methods.

Vitalik Buterin, one of the co-founders of Ethereum and a prominent figure in the cryptocurrency world, recently outlined his vision for the collaboration between artificial intelligence (AI) and Ethereum. Buterin emphasized that this partnership could play a significant role in creating a more secure financial infrastructure, empowering users, and fostering healthy market development.

Innovative Solutions in Privacy and Verification

Among the critical issues Buterin highlighted was privacy. He stressed the necessity for new technologies that enable users to interact securely with large language models (LLMs) without revealing their identities or personal data. His recommendations include AI software operating locally on personal devices, zero-knowledge proofs for anonymous API access, and robust cryptographic verification methods.

Contents

Innovative Solutions in Privacy and Verification

Economic Interaction and Decentralized Governance

Call for Innovative Layer 2 Developers

Buterin further pointed out the potential for AI-based intermediary teams to act as bridges between users and the blockchain. These AI agents could audit transactions, detect suspicious activities, and offer users suggestions for making informed decisions about their on-chain actions.

Economic Interaction and Decentralized Governance

Another significant aspect of Buterin’s assessments involves the future of AI agents economically interacting on Ethereum. These agents could engage in transactions, make API calls, deposit security guarantees, and operate on the blockchain on behalf of users. Such advancements could make the crypto ecosystem more accessible and efficient.

Buterin perceives these developments as not only delivering technical innovations but also strengthening decentralized governance and collaborative opportunities. Particularly in areas where human attention and decision-making capacity are limited, such as decentralized governance and prediction markets, LLMs could enable meaningful progress in collective decision-making processes.

Vitalik Buterin, one of the co-founders of Ethereum and a prominent figure in the cryptocurrency world, recently outlined his vision for the collaboration between artificial intelligence (AI) and Ethereum. Buterin emphasized that this partnership could play a significant role in creating a more secure financial infrastructure, empowering users, and fostering healthy market development.

Innovative Solutions in Privacy and Verification

Among the critical issues Buterin highlighted was privacy. He stressed the necessity for new technologies that enable users to interact securely with large language models (LLMs) without revealing their identities or personal data. His recommendations include AI software operating locally on personal devices, zero-knowledge proofs for anonymous API access, and robust cryptographic verification methods.

Contents

Innovative Solutions in Privacy and Verification

Economic Interaction and Decentralized Governance

Call for Innovative Layer 2 Developers

Buterin further pointed out the potential for AI-based intermediary teams to act as bridges between users and the blockchain. These AI agents could audit transactions, detect suspicious activities, and offer users suggestions for making informed decisions about their on-chain actions.

Buterin believes this approach could help implement the ‘trust, but verify’ principle in practice.

Economic Interaction and Decentralized Governance

Another significant aspect of Buterin’s assessments involves the future of AI agents economically interacting on Ethereum. These agents could engage in transactions, make API calls, deposit security guarantees, and operate on the blockchain on behalf of users. Such advancements could make the crypto ecosystem more accessible and efficient.

Buterin perceives these developments as not only delivering technical innovations but also strengthening decentralized governance and collaborative opportunities. Particularly in areas where human attention and decision-making capacity are limited, such as decentralized governance and prediction markets, LLMs could enable meaningful progress in collective decision-making processes.

Buterin underlined the idea of ‘scaling human judgment,’ suggesting that Ethereum’s community-centric systems could enhance their information processing capabilities.

Call for Innovative Layer 2 Developers

Beyond AI integration, Buterin called on developers within the Ethereum ecosystem’s Layer 2 (L2) to prioritize innovation. He remarked that further advancement on Ethereum could be achieved through new ideas and innovation rather than merely repeating existing applications.

Buterin’s statements bring to the forefront the potential contributions that AI and blockchain technologies together could offer, highlighting the path for both technical and societal innovations within the industry.

Circle minted $250 million USDC as liquidity issued from Treasury.

No confirmed impact on ETH or BTC noted.
Minting reflects typical USDC liquidity actions, limited broader effects.

A substantial mint of 250 million USDC, valued at $250,075,500, occurred at the USDC Treasury on February 7, 2026, according to Whale Alert monitors.

This minting demonstrates a routine liquidity practice without primary source confirmation, highlighting the stablecoin’s operational dynamics within the cryptocurrency ecosystem.

On February 7, 2026, Circle minted 250 million USDC from the Treasury. No primary data confirms market ripple effects or specific allocations impacted exchange activities.

Circle and the Centre Consortium facilitated the mint, increasing USDC treasury assets. No official insights surfaced; speculations persist, citing gains in reserves backing this issuance.

Immediate effects on cryptocurrency markets remain unclear, with experts unable to confirm significant impact. Routine liquidity demands drive this mint with no unverified flow implications.

The mint enhances Circle’s reserves, yet financial and political effects remain speculative. Official sources remain silent on definitive shifts attributed to this liquidity operation.

Existing processes reinforce USDC’s liquidity management, without confirmed market changes from this action. Analysts monitor for potential indirect impacts on broader markets.

In the absence of official regulatory adjustments, larger USDC supply trends match typical demand responses, suggesting standard procedures without broader infrastructure effects.

“The issuance of 250 million USDC aligns with Circle’s strategic liquidity management, reflecting standard operations with no immediate impact on market volatility,” reported a financial analyst.

Group 42 Holding Ltd, an Emirati artificial intelligence (AI) development holding company doing business as G42, is leading a $1 billion initiative to establish data centers and cloud computing services in Vietnam. This project is part of the United Arab Emirates’ broader plan to intensify its AI efforts amid stiffening competition in the AI ecosystem.

In a statement published on Monday, February 9, the firm pointed out that this initiative will take place under the partnership of G42, FPT Corp., a tech and telecom company, and the Viet Thai Group. This was after the team signed an agreement in Ho Chi Minh City, Vietnam, to construct three data centers in the country, committing to $1 billion in consumption.

Officials said this infrastructure will support Vietnam’s broader digital agenda, including government digital transformation projects, AI‑enabled industrial automation, local cloud adoption, and data sovereignty goals. Complementary efforts will also include national AI-skilling and workforce development programs designed to expand local talent in AI, cloud engineering, cybersecurity, and advanced computing.

Nonetheless, despite the collaboration being made public, sources noted that G42 failed to disclose specific information on the investment amounts, the project timeline for finalization, or the computing power to be made available.

Vietnam solidifies its position as a tech hub in the region

G42’s recent announcement reflects a growing trend in which several investors are allocating a significant portion of their funds to enhance AI infrastructure across Southeast Asia amid substantial expansion potential. However, while the region drew the attention of several individuals, reports highlighted that some people raised concerns about challenges in Southeast Asia, such as power shortages and limited land.

See also Nvidia says H20 chips are in short supply in China

These concerns were raised after protesters assembled at a Malaysian data center construction site to complain about dust pollution and its impacts on water resources.

Meanwhile, concerning the $1 billion data center project in Vietnam, Ali Al Amine, Chief Commercial Officer of G42 International noted that, “This Framework Agreement introduces a new approach for national AI transformation, focusing on sovereignty, collaboration, and purpose,” further stating that, “We appreciate the visionary leadership of the Government of Vietnam and thank our partners, FPT Corporation and Viet Thai Group, for their dedication to developing infrastructure that allows Vietnam to fully utilize AI while ensuring data sovereignty and digital independence.”

At this particular moment, Dr. Truong Gia Binh, the co-founder, chairman, and CEO of the Vietnamese technology company FPT Group, decided to weigh in on the matter. He began by acknowledging that Vietnam cannot make significant progress on its own, especially in key sectors such as AI, cloud computing, big data, and cybersecurity.

This, therefore, underscores the importance of strategic partnership. With the collaboration of G42, FPT Corp., a tech and telecom company, and the Viet Thai Group, industry executives have illustrated strong dedication and developed mutual trust, signaling the initiation of these commitments into action, the CEO asserted.

Notably, this project is anticipated to have significant economic effects in Vietnam by creating job opportunities, encouraging direct investment in infrastructure, and positioning the country as a leading tech hub in the region.

G42’s decision to sell off its Chinese assets

Earlier, G42 was subjected to a thorough investigation in the US regarding prior deals with startups based in China and Huawei Technologies Co., a Chinese multinational corporation and technology company.

Given these strict measures in place, G42 publicly stated that it has no involvement in Chinese assets, having sold them all and begun supporting US President Donald Trump’s efforts to export American AI chips, software, and models to diminish overall growth in China.

In the meantime, the company launched a framework for Digital Embassies during the World Economic Forum held earlier this year. The newly released framework permits other firms to establish and manage computing services in foreign territory. In addition, the system will ensure other nations have full legal authority over AI models and data evaluated in the United Arab Emirates.

What are Tether’s Recent Achievements?

The latest data reveals that during the last quarter of 2025, Tether expanded its gold holdings by 32 tons, culminating in 148 tons by January’s end. Positioned among the globe’s top 30 gold holders, Tether’s reserve surpasses those of nations like Australia and Greece. This acquisition spree, second only to Poland and Brazil’s central banks, accentuates how private companies are escalating to state-level financial clout.

Apart from publicized figures, it is speculated that Tether may have additional undisclosed gold holdings. These reserves are deployed not only for the dollar-tethered USDT but also support the gold-backed XAUT token. By January’s close, XAUT’s supply was $3.2 billion, underscoring pivotal interest in gold-backed cryptocurrencies, especially among emerging market investors.

Why is Tether Accumulating Gold?

The strategic gold acquisition occurs amid record gold prices, over $5,000 per ounce. Gold’s nearly 50% rise since September, fueled by factors such as central banks reducing dollar dependence, augments Tether’s asset values. Tether’s CEO, Paolo Ardoino, has indicated plans to allocate a significant portion, 10% to 15%, of their portfolio towards physical gold, hinting at sustained aggressive investment strategies.

Tether’s investment blueprint is not solely concerned with asset volume but is also aimed at providing buffer against potential economic disruptions. By the previous year’s end, Tether’s investment portfolio was valued at $20 billion, underscoring a commitment to underpinning USDT’s stability with tangible assets. According to Ardoino, the growing need for gold-backed crypto solutions arises from high inflation and currency devaluation in developing regions.

The substantial gold accrual signifies that Tether is morphing into one of the largest commodity entities globally. This rapid escalation from 126 tons, as per fourth-quarter reports, is attributed to Tether’s operational agility. The flourishing reserves are set to further congeal the interactions between the digital and traditional financial landscapes.

Continuing its gold acquisition spree, Tether may influence future global market dynamics. A private company amassing precious metals at a sovereign level illustrates the shifting paradigms in fiscal rules. As per Jefferies, Tether’s initiatives might inspire similar moves by other stablecoin creators.

“High inflation and currency depreciation in developing nations are driving the demand for our gold-backed digital solutions,” stated Paolo Ardoino, CEO of Tether.

Tether’s foray into gold accumulation reshapes its role from a technology-centric entity to a substantial player in the global commodity arena. This innovative approach underscores the evolving narrative of financial integration across platforms, meriting close observation from both traditional and digital financial sectors.