ARK Requests SEC Approval for Tokenized Share Class of Venture Fund
ARK files request to create blockchain‑recorded share class
ARK Investment Management has asked the U.S. Securities and Exchange Commission for permission to add a new share class to its ARK Venture Fund. The new class would record ownership on a distributed ledger, a type of blockchain that stores data across many computers.
The request was filed with the SEC, which published a notice on August 24. The SEC set a deadline of September 18 for any hearing requests.
Key points
- ARK wants a tokenized share class that can trade on registered alternative trading systems.
- The SEC notice was released on Aug. 24; hearing requests are due Sept. 18.
- ARK Venture Fund held $562 million in assets as of Jan. 31.
- Existing share classes (D, S, U) were priced near $49.70 each on May 15.
- The proposal adds an Exchange Class and a Tokenized Class.
- No specific blockchain vendor or tokenization provider is named.
SEC filing details
The SEC’s notice, filed under number 812‑16031, references an application submitted on May 20 and amended on June 11 and Aug. 7. The filing asks for relief under sections 6(c), 18, and 17(d) of the Investment Company Act and under Rules 23c‑3 and 17d‑1.
Current fund snapshot
ARK Venture Fund is a continuously offered closed‑end interval fund. Its semi‑annual report shows $562 million in total assets on Jan. 31. The three existing share classes—Class D, Class S and Class U—were priced at $49.83, $49.69 and $49.70 respectively on May 15, giving a non‑affiliate market value of about $912.6 million.
Proposed new classes
The amendment would create two additional classes. An Exchange Class would be listed on a national securities exchange. A Tokenized Class would have ownership recorded on a distributed ledger and could be traded on ATS venues, other quotation mediums, or via peer‑to‑peer transfers between whitelisted wallets. ARK is not seeking relief to list the tokenized shares on decentralized finance platforms.
Regulatory context
The SEC has not yet adopted the “innovation exemption” that many in the industry expected for tokenized securities. A separate proposal on Regulation Crypto Assets, announced by SEC Chair Paul Atkins on Aug. 18, invites comments until Oct. 20 but does not cover tokenized fund shares. The SEC also proposed new rules for transfer agents on Sept. 1, with a comment deadline of Nov. 3.
Next steps
After the Sept. 18 hearing deadline, the SEC may grant an order approving the new share classes. If approved, the tokenized class could be issued at net asset value without a sales load and would be distributed by registered broker‑dealers or the fund’s transfer agent.
