CryptoSlate
ARK Invest and Securitize announced Sept. 24 that eligible investors can hold tokenized interests in the ARK Venture Fund on Ethereum. The fund offers quarterly repurchases of up to 5% of outstanding shares at net asset value, and ARK says no secondary market is expected at launch. Its next scheduled repurchase request deadline is Sept. 30.
Why it matters
The offering puts an established interval fund on blockchain infrastructure, but tokenization does not remove the restrictions on selling its shares. The interests represent exposure through ARKVX, which invests in private and public technology companies. Securitize will handle on-chain issuance and the investor experience.
ARK says only approved wallets can hold the tokenized shares. Alternative trading systems, over-the-counter transactions and peer-to-peer sales are possible under the offering terms, but no trading venue or guaranteed buyer has been announced. ARK does not expect a robust market at the outset, and the shares remain unlisted.
Market impact
Investors looking to exit are therefore still centered on the fund's quarterly repurchase policy, which can buy back no more than 5% of outstanding shares per quarter. Repurchases are allocated across the entire fund, rather than through a separate pool for tokenized shares.
A Sept. 21 SEC order permits ARK to offer the tokenized share class, which may trade on alternative trading systems or appear on other quotation services. Whether that creates a practical exit route depends on trading actually beginning and buyers emerging. The published terms also leave open whether an investor acquiring tokenized interests after Sept. 24 can take part in the Sept. 30 repurchase request window.
Frequently asked questions
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How much of ARK Venture Fund can be repurchased each quarter?
The fund offers to repurchase up to 5% of its outstanding shares at net asset value each quarter.
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Does tokenization give ARKVX investors an immediate secondary market?
No. ARK says the shares are unlisted and that it does not expect a robust secondary market at launch. No trading venue or guaranteed buyer has been announced.
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Who handles the on-chain issuance of ARKVX interests?
Securitize will handle on-chain issuance and the investor experience for the tokenized interests.
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Who can hold the tokenized ARK Venture Fund shares?
ARK says only approved wallets can hold the tokenized shares.
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Do tokenized shares have a separate quarterly buyback pool?
No. Repurchase offers are allocated across the entire fund, so the tokenized class has no separate buyback pool.
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