ARK and Securitize Put Venture Fund Shares on Ethereum, but Exit Options Stay Limited
ARK Invest and Securitize announced on Sept. 24 that eligible investors will be able to hold tokenized interests in the ARK Venture Fund on Ethereum, the blockchain network that supports many crypto applications. The move puts an existing interval fund onto blockchain infrastructure, but it does not change how hard it can be for holders to sell their shares.
Tokenized interests represent exposure to the fund through a managed portfolio, giving holders a stake in ARKVX. Securitize said it will handle the on-chain issuance and the investor experience.
The fund keeps quarterly buyback limits
- ARKVX invests across private and public technology companies, according to the announcement.
- The fund offers to buy back up to 5% of its outstanding shares at net asset value each quarter.
- ARK's repurchase calendar sets Sept. 30 as the next request deadline, days after the tokenization announcement.
- ARK and Securitize's launch disclosure says the shares are unlisted and no secondary market is expected.
Secondary trading is allowed but has no venue yet
A Sept. 21 SEC order gives ARK permission to offer a tokenized share class that may trade on alternative trading systems or appear on other quotation services. An alternative trading system is a regulated platform for matching buyers and sellers outside a traditional stock exchange. Whether that route actually provides buyers depends on trading starting and buyers showing up.
ARK's application behind the order adds limits. It said only approved wallets could hold tokenized shares. A wallet is a tool for storing and controlling crypto assets. ARK also said it did not expect a strong trading market at the start, and it described alternative-system, over-the-counter and peer-to-peer transactions as possibilities subject to those controls.
No separate buyback pool for token holders
The application also states that repurchase offers are allocated across the entire fund. That means the tokenized class does not have its own buyback pool, so token holders compete for the same limited repurchase capacity as other shareholders.
What is confirmed
ARK Invest and Securitize announced the tokenization on Sept. 24. Securitize will manage on-chain issuance and the investor experience. ARKVX invests in private and public technology companies, and the tokenized interests give holders a stake in the fund. ARK's calendar lists Sept. 30 as the next repurchase deadline, and the fund's policy allows buybacks of up to 5% of outstanding shares per quarter at net asset value. The SEC order is dated Sept. 21. The shares are unlisted, and the launch disclosure says no secondary market is expected.
What is still unclear
The published calendar and launch terms do not make clear whether someone who acquires a tokenized interest after Sept. 24 can take part in the September repurchase offer. It is also unclear whether trading on alternative systems will start, and whether enough buyers would appear to make secondary sales practical.
Why it matters
Tokenizing a fund can put ownership on a blockchain, but it does not automatically create liquidity. For anyone looking at ARKVX, the main question is whether a place to sell tokenized shares actually opens and attracts buyers. Until then, ARK's published terms center on a quarterly process that can buy back only a limited portion of the fund.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.