Fund tokenization and on-chain share classes evolution

The cluster centers on a single strategic shift: an application by the ARK Venture Fund to expand its multi-class structure by adding an Exchange Class and a Tokenized Class whose ownership would be recorded via distributed ledger technology. The fund, which reported $562 million in total assets as of Jan. 31, 2026, already operates multiple share classes; existing Class D, Class S and Class U were priced at $49.83, $49.69 and $49.70 as of May 15, implying roughly $912.6 million aggregate non-affiliate market value across classes. The amendment was filed on May 20 and subsequently amended on June 11 and Aug. 7, and formal notice of the request was published in late August, triggering a comment and hearing window that the regulator set a mid-September deadline to act upon.

Under the proposed structure tokenized-class shares would be issued at net asset value through the fund’s subscription process, sold without a sales load, and distributed either by registered broker-dealers or directly by the fund’s transfer agent. The Tokenized Class would permit trading on SEC-registered alternative trading systems, on other quotation mechanisms, and peer-to-peer transfers between whitelisted wallets; however, every wallet holding tokenized shares must pass KYC/AML checks and be white‑listed. The application does not request relief for the blockchain mechanics themselves and does not name a tokenization provider, transfer agent, or specific ledger, instead referring to tokenization agents and the fund’s transfer agent as expense categories. Separately, the fund holds an equity position and a $10 million convertible-note exposure to a tokenization infrastructure firm.

Legally, the request seeks exemptive relief under provisions of the Investment Company Act to permit the new share classes and certain fee and repurchase arrangements; it would also ask that similar relief be available for other interval funds governed by the same rules in the future. The regulatory backdrop remains in flux: a broader innovation exemption for tokenized securities has been signaled but not finalized, and contemporaneous proposals to overhaul transfer agent rules reference blockchain use in securities recordkeeping. Practically, approval would create a template for regulated tokenized fund shares that could expand secondary market liquidity for interval or semi-liquid vehicles, while introducing governance and market‑pricing considerations—most notably the potential divergence between trading price and the fund’s NAV. The filing therefore positions the tokenized-share route as a possible industry reference while underscoring that execution depends on specific regulatory approvals, KYC/AML gating, and operational choices about tokenization vendors and settlement arrangements.