ARK Venture Fund received U.S. Securities and Exchange Commission (SEC) approval to offer a tokenized class of fund shares, clearing a regulatory hurdle for secondary trading of the shares through alternative trading systems and other permitted venues.
The SEC’s Sept. 21 order amended an earlier exemptive order covering ARK Venture Fund and ARK Investment Management LLC. The amended relief allows the fund to offer both a class listed on a national securities exchange and a separate class of tokenized shares that can trade on one or more alternative trading systems, or be quoted through other quotation mediums.
The order was effective immediately and remains subject to the conditions set out in ARK’s application.
Tokenized shares can use distributed ledger technology
Under the application, ownership of the tokenized class will be recorded using distributed ledger technology. The shares may be distributed by registered broker-dealers or directly through the fund’s transfer agent.
The tokenized shares may trade on alternative trading systems, be quoted through another quotation medium, or be transferred through peer-to-peer transactions between approved wallets.
The alternative trading systems contemplated by the application must be subject to Regulation ATS and operated by SEC-registered broker-dealers that are FINRA members.
The SEC’s order does not state that trading of the tokenized shares has already begun.
SEC sets conditions for tokenized class
The relief requires ARK Venture Fund to disclose its net asset value per share prominently on its website each business day.
The fund must also disclose that transactions on an exchange, ATS, or through peer-to-peer markets can occur at prices above or below NAV. Investors could therefore buy shares for more than NAV or sell them for less than NAV in secondary-market transactions.
Tokenized shares will not be subject to early withdrawal charges under the approved structure. The fund also must comply with specified requirements governing multiple share classes, distribution and service fees, and allocation of class-specific expenses.
Wallets will face KYC and AML checks
The order also requires the fund, or an agent acting on its behalf, to conduct anti-money-laundering and know-your-customer reviews of wallets seeking to hold tokenized shares.
Only approved wallets will be permitted to hold the Tokenized Class. The fund must collect sufficient identifying information on wallet owners and comply with applicable investor-identification, sanctions, and anti-money-laundering requirements.
ARK sought the relief in May
ARK Venture Fund and ARK Investment Management filed the application on May 20, 2026, with amendments submitted in June and August. The SEC published notice of the application on Aug. 24 and allowed interested parties to request a hearing. No hearing request was filed, and the Commission subsequently granted the requested exemptions.
The fund is a registered, continuously offered, non-diversified closed-end management investment company that operates as an interval fund. Its investment objective is long-term capital growth, with investments primarily focused on companies tied to disruptive innovation.
SEC relief extends beyond existing fund structure
The amended order replaces the prior 2025 order, which had permitted ARK Venture Fund to issue multiple share classes and impose certain distribution, service, and early withdrawal fees but had contemplated no exchange listing or secondary trading market for the shares.
The new order also permits the relief to apply to certain future funds advised by ARK Investment Management or qualifying affiliates, provided those funds comply with the same conditions.
The SEC’s action comes as the agency separately develops a framework for tokenized securities trading. On Sept. 17, the commission issued temporary, conditional exemptive relief for certain tokenized NMS stocks traded through Tokenized Securities Venues. That separate order concerns tokenized stocks and trading venues, rather than ARK Venture Fund shares.
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