ARK Venture Fund Gets SEC Nod for Tokenized Fund Shares
The U.S. Securities and Exchange Commission has granted ARK Venture Fund approval to issue a tokenized class of shares, marking a significant regulatory milestone for secondary market trading of fund interests. Under the Sept. 21 order, these shares will be recorded on a distributed ledger and can be traded on alternative trading systems or via peer-to-peer transfers between approved wallets. To ensure compliance, the fund must conduct rigorous anti-money-laundering and know-your-customer checks on all participating wallets. The approval requires daily disclosure of the net asset value on the fund's website, while acknowledging that secondary market prices may deviate from this value. This development allows ARK Investment Management to move beyond its previous 2025 structure, which lacked provisions for secondary market liquidity. By enabling tokenized shares for an interval fund focused on disruptive innovation, the SEC is establishing a clearer pathway for the integration of blockchain technology into traditional investment vehicles. This move reflects a broader regulatory trend, as the commission simultaneously explores frameworks for tokenized NMS stocks and other digital securities venues.