ARK Seeks SEC Approval for Tokenized Share Class in Venture Fund
ARK Investment Management filed an exemptive application with the SEC to create a tokenized share class for its venture fund, enabling ownership records on distributed ledger technology and trading on registered alternative trading systems. The SEC will accept hearing requests on the proposal through September 18.
Written by CoinArticle’s AI Newsroom · from 2 cited sources. How we work
ARK's Exemptive Application
ARK Investment Management submitted a request to the SEC for an exemption that would allow its Venture Fund to issue and track a new share class using distributed ledger technology. The tokenized shares would trade on registered alternative trading system (ATS) venues rather than traditional exchanges. According to the filing, the structure would maintain regulatory compliance while leveraging blockchain infrastructure for settlement and ownership records.
Regulatory Process and Timeline
The SEC is accepting hearing requests from interested parties through September 18 as part of its review of the exemptive application. The agency has not yet signaled approval or rejection. If granted, the exemption would represent one of the first instances of a major asset manager obtaining SEC authorization to issue tokenized fund shares that settle and trade on-chain within a regulated framework.
Implications for Tokenized Fund Shares
The application reflects growing institutional interest in tokenized securities infrastructure. If approved, ARK's structure could establish a template for other fund managers seeking to offer blockchain-native share classes while remaining within SEC oversight. The move does not constitute approval of tokenization more broadly but rather a narrow exemption for this specific fund structure and trading venue.
Why It Matters
For Traders
If approved, ARK's tokenized shares could provide new trading venues and settlement mechanics, though near-term impact depends on actual fund inflows and ATS adoption.
For Investors
An SEC exemption for tokenized fund shares would signal regulatory willingness to accommodate blockchain infrastructure within traditional asset management, potentially unlocking institutional capital.
For Builders
Approval would validate tokenized securities infrastructure and ATS platforms as legitimate settlement layers for regulated fund shares, creating demand for supporting protocols and custody solutions.
This article is for information only and is not financial advice. Read the full disclaimer.
