ARK bids to become one of the first US funds with SEC-cleared tokenized shares
- ARK is seeking SEC approval to add Exchange and Tokenized share classes to its Venture Fund, though it has no immediate launch plans.
- The Tokenized Class could trade through registered ATS platforms or approved wallets and may support T+0 settlement.
- Approval would replace ARK’s 2025 structure and open a regulated path for secondary trading of blockchain-based fund shares.
ARK Investment Management requested the SEC to allow its ARK Venture Fund to offer a tokenized share class, which could pave the way for blockchain ownership and secondary trading for a registered interval fund.
However, ARK has no plans to introduce the new share class at this point. The company filed the Second Amended Application with the SEC on August 7, seeking to modify the order issued in 2025 prohibiting the fund from offering shares in the unlisted category without a secondary market.
Two new share classes, one on a blockchain
The ARK Venture Fund is a non-diversified closed-end interval fund functioning as a Delaware statutory trust and engaging in investments in both public and private entities utilizing disruptive innovations. Its offerings bear the names Class D (ARKVX), Class S (ARKSX), and Class U (ARKUX).
Those classes come with different costs. ARK’s prospectus lists net annual fund expenses after reimbursement of 2.90% for Class D, 3.60% for Class S and 3.50% for Class U. Class D and U have no sales load, while Class S may carry one of up to 3.50%. Their distribution and shareholder-services fees are 0.15%, 0.85% and 0.75%, respectively.
ARK now wants to add an Exchange Class and a Tokenized Class. Both would have no sales load, although the filing says either may carry distribution and shareholder-services fees and class-specific expenses. Exact ongoing fee rates and net expense ratios have not yet been specified.
The Exchange Class will be traded in a national securities exchange and issued via an at-the-market offering.
Where the tokenized shares could trade
The Tokenized Class has used distributed-ledger technologies to track ownership. Shares can be distributed through registered broker-dealers or directly by the fund’s transfer agent and may be traded on SEC-registered Regulation ATS systems, other quotation media, or on a peer-to-peer basis through “whitelisted” wallets.
According to ARK, some tokenized transactions may settle on a T+0 basis, while the Exchange Class transactions are expected to settle on a T+1 basis.
This is a major change from ARK’s November 2025 exemptive order in which it stated that the fund’s shares were not exchange-registered, quoted, or anticipated to have a secondary market. The proposed order will replace the prior order.
How the SEC approval process works
ARK submitted an initial application on May 20th, revised it on June 11th, and filed its second amendment on August 7th. The SEC released the notice concerning this issue on August 24th.
If there is no hearing held by the Commission, it is assumed that it will accept the requested appeal. Hearing requests are due by 5:30 p.m. ET on September 18th.
The wider regulatory direction is also becoming clearer. In January, three SEC departments actively dealt with tokenized securities stating that the law does not depend on the form in which it has been represented, saying:
The format in which a security is issued … does not affect application of the federal securities laws.
On September 1, SEC Chairman Paul Atkins stated that the new regulations concerning transfer agents will consider “electronic communications and blockchain technology” in securities offerings and share transfers.
A fund manager chasing a fast-growing market
ARK fund is entering a market that is relatively small, but growing rapidly. In fact, RWA.xyz reported that on September 8, some $2.35 billion of tokenized equity and venture capital has been distributed across 25 assets and 7,263 holders, with Blockchain Capital’s BCAP token alone making up $960 million of that amount.
According to earlier reports by Cryptopolitan, tokenized equity onchain trading was worth $9 billion as of July, compared to just $1 billion in January, with venture capital being one of the top-performing categories in the world of tokenized assets.
According to PwC’s forecasts, the total value of tokenized investment assets worldwide is predicted to increase by an average of 41% annually to reach an impressive $715 billion by 2030.
If the SEC approves ARK’s new arrangement, it is possible that its consequences will be more than just about one investment fund. It will give regulated investment managers a clearer understanding of how to combine traditional fund ownership with broker-dealer supervision and on-chain transfer mechanisms without treating tokenization as a way to circumvent the rules of securities legislation.
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FAQs
What exactly is ARK asking the SEC to approve?
ARK wants to amend a prior SEC order so its ARK Venture Fund can add two share classes: an Exchange Class listed on a national securities exchange, and a Tokenized Class whose ownership is recorded on a distributed ledger and can trade on SEC-regulated alternative trading systems or be quoted elsewhere.
How big is the tokenized private-market fund space ARK is entering?
Tokenized private equity and venture capital held roughly $2.35 billion in distributed value across 25 assets and 7,263 holders, according to RWA.xyz, and PwC projects tokenized fund assets will reach $715 billion globally by 2030.
What is a tokenized share class?
A tokenized share class is a class of fund shares whose ownership record is maintained using distributed-ledger technology, rather than being represented solely through a conventional centralized shareholder record. In ARK's proposal, the Tokenized Class would remain a security issued by the fund. The blockchain does not change the legal nature of the share.
What is ARK actually tokenizing?
ARK is not tokenizing the private companies held by the venture fund. It is proposing to tokenize a new class of shares in ARK Venture Fund itself. Investors would therefore own a tokenized representation of their fund interest, while the fund would continue to own its underlying portfolio.
Which ARK Venture Fund ticker exists?
The existing ARK Venture Fund share class is ARKVX. ARK's fund page identifies ARKVX as Class D and describes the fund as an interval fund. As of July 31, 2026, ARK reported about $1.184 billion in net assets.
What is an interval fund?
An interval fund is a type of registered closed-end fund that generally does not provide investors with daily liquidity. Instead, it periodically offers to repurchase a stated portion of its shares, usually at a price based on net asset value.
Does tokenization mean ARK Venture Fund would become a normal publicly traded ETF?
No. ARK is proposing different classes of shares, including an Exchange Class and a Tokenized Class. The tokenized shares could potentially trade on ATSs, but that does not make the fund an ETF or automatically give investors continuous public-market liquidity.
What is Regulation ATS?
Regulation ATS is the SEC regulatory framework governing alternative trading systems, or ATSs. An ATS can provide a marketplace that brings together buyers and sellers of securities without being registered as a national securities exchange, provided it operates under the applicable exemption and complies with Regulation ATS requirements.
What is an alternative trading system in simple terms?
An ATS is essentially a regulated securities-trading venue that is not a traditional national securities exchange.
Does an ATS mean anyone could trade ARK's tokenized shares on a crypto exchange?
No. ARK's proposal does not amount to permission for unrestricted trading on ordinary crypto exchanges.
What does the footnote about distributed-ledger technology actually mean?
ARK is seeking exemptive relief for the fund/share-class structure and trading arrangements, while proposing to use distributed-ledger technology for the ownership record.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Micah Abiodun
Micah Abiodun makes good use of his Environmental Engineering and Management (MSc) at Tallinn University of Technology (TalTech) to polish content and price prediction news at Cryptopolitan. Now on his 7th year in the crypto media space, he covers major cryptos, altcoins, DeFi, stablecoins, macro trends, and emerging tech.
