SEC Grants ARK Venture Fund Exemptive Relief for Exchange and Tokenized Share Classes

The U.S. Securities and Exchange Commission (SEC) has issued an amended exemptive relief order (Release No. IC‑36333) to ARK Venture Fund and its manager ARK Investment Management. The order permits the fund to establish two distinct share classes: an Exchange Class intended for listing on a national securities exchange, and a Tokenized Class whose ownership records may be maintained using distributed‑ledger technology.

Regulatory Framework

The relief modifies the fund’s status under the Investment Company Act, providing a legal structure for a registered investment company to operate a tokenized share class alongside a conventional one. The order does not indicate that the tokenized shares are currently trading, nor does it set a launch date.

Potential Distribution Channels

The Exchange Class follows traditional securities‑exchange rules, while the Tokenized Class could be traded on alternative trading systems (ATS) and would rely on blockchain‑based record‑keeping for ownership transfers. This distinction separates the tokenized class from merely placing a fund ticker on a blockchain for marketing purposes.

Implications

• Provides a regulatory pathway for tokenized fund shares within established securities law.
• Allows ARK to test blockchain‑based ownership records against existing transfer, custody, and investor‑protection requirements.
• Marks a shift from private‑market tokenized fund experiments toward structures that could integrate with mainstream financial markets.

Next Steps

While the SEC has cleared the structure, ARK has not announced a commercial rollout or confirmed that the tokenized class is live on any trading platform. The development remains a regulatory infrastructure milestone rather than a product launch.