ETF Narrative Gains Momentum, But Regulation Is the Key Variable

Whenever cryptocurrencies move toward ETFs, the core player that cannot be avoided is the U.S. Securities and Exchange Commission. Regulatory stance often determines the pace, rather than market sentiment.
Historically, regulatory agencies are more concerned with three issues: market manipulation risks, liquidity support, and custody security. As a DeFi token, AAVE's price formation heavily depends on on-chain trading environments, which is not entirely consistent with the logic of traditional commodity ETFs.
Therefore, the approval process itself is a "compliance stress test." Passing it means partial recognition of the asset; delays or rejection do not represent the end, but rather a matter of timing.
The market tends to see "applications" as positive news, but what truly affects long-term trends is the retention rate of funds after implementation, not the initial hype.
Many assets rise in anticipation of ETFs, but after realization, they return to rationality—this is a common rhythm in capital markets.
Rational thinking is more important than following emotions.
Interaction: Do you think the market has already priced in ETF expectations in advance?#灰度拟将AAVE信托转为现货ETF