TL;DR: The SEC has given ARK Venture Fund amended exemptive relief for two new share classes. The structure includes an Exchange Class and a Tokenized Class, whose ownership can be recorded using distributed-ledger technology. The order allows this structure, but ARK has not said the new shares are already trading.
ARK Venture Fund has received an SEC order that lets it test two very different distribution methods for the same underlying investment product. Release No. IC-36333 grants ARK Venture Fund and ARK Investment Management amended exemptive relief under the Investment Company Act, allowing the fund to create an Exchange Class and a Tokenized Class.
One Fund, Two New Ways to Hold It
The Exchange Class is meant to be listed on a national securities exchange. The Tokenized Class goes further. Ownership records for those shares can be kept using distributed-ledger technology, with trading potentially happening through alternative trading systems. That is a meaningful difference from simply putting a fund ticker onchain as a marketing layer. The SEC order addresses the legal structure a registered fund needs to maintain a tokenized class alongside conventional fund interests. It also gives ARK a way to test whether blockchain-based ownership records can work alongside the transfer, custody, and investor-protection requirements that already apply to registered investment companies.
Permission Is Not the Same as a Launch
One important distinction: the SEC has granted the exemptive order, but it has not announced that ARK’s Tokenized Class is already live on an ATS. ARK has also not set an immediate commercial launch date in the material reviewed for this report. That makes this a regulatory infrastructure story, not a product-launch story. Still, the order is notable because tokenized funds are increasingly moving from custom private-market experiments into structures designed to fit within established securities law. ARK now has regulatory clearance to build these new share classes. The next question is when it will decide to put them into actual circulation.
This article was written by the News Desk and edited by Samuel Rae.
Frequently Asked Questions
FAQs SEC Approval of the ARK Venture Funds Tokenized and ExchangeTraded Share Classes
Beginner Questions
What did the SEC just approve
The SEC approved ARKs Venture Fund to offer two versions of its shares traditional exchangetraded shares and tokenized shares Both represent the same fund just in different forms
What is the ARK Venture Fund
Its an investment fund managed by ARK Invest that gives investors exposure to private venturestage companiesstartups and earlygrowth businesses that arent publicly traded yet
What does tokenized shares mean
Tokenized shares are digital representations of fund shares recorded on a blockchain Instead of only appearing in a brokerage account your ownership is also tracked on a distributed ledger
Whats an exchangetraded share class
This is the traditional versionshares that trade on a stock exchange during market hours bought and sold through a regular brokerage account
Are the tokenized and exchangetraded shares different investments
No They represent the same underlying fund and the same portfolio of companies The difference is how ownership is recorded and how the shares trade
Why is this a big deal
Its one of the first times the SEC has allowed a fund to offer both traditional and blockchainbased share classes It signals regulators are opening the door to tokenized traditional investments
Can regular investors buy these shares
Access depends on the funds rules and your broker Some tokenized offerings may have eligibility requirements or platform restrictions so check with your brokerage or the funds documents
Intermediate Questions
What are the benefits of tokenized shares
Potential benefits include faster settlement 247 trading possibilities fractional ownership and easier transferability It can also reduce backoffice costs over time
Do tokenized shares trade on weekends or holidays
Not necessarily Even if the blockchain runs 247 the funds shares may still be subject to market hours liquidity or platform rules Check the specific terms
Will tokenized shares have the same price as exchangetraded shares
They should track the same net asset value but prices can differ slightly due to liquidity trading hours or platform premiums and discounts
How do I know my tokenized shares are real
Ownership is recorded on the blockchain and should be verifiable The fund and its transfer agent are