SEC grants ARK relief for a tokenized interval-fund share class

What changed

The SEC granted ARK Venture Fund and ARK Investment Management immediately effective exemptive relief permitting the requested multi-class structure, including a Tokenized Class whose ownership may be recorded using distributed-ledger technology. The order grants specified Investment Company Act exemptions and joint-transaction approval subject to the representations and conditions in ARK's application, replacing the prior pending-application posture with binding applicant-specific relief.

Who it affects

• ARK Venture Fund and other eligible interval funds advised by ARK or qualifying affiliates
• Investment advisers evaluating the authorized tokenized registered-fund shares for client accounts
• Broker-dealers, alternative trading systems, transfer agents, custodians, tokenization agents, and wallet-service providers supporting the Tokenized Class

What is still open

• When ARK will offer the Tokenized Class and which funds, blockchain systems, wallets, trading venues, and service providers will participate
• How custody, wallet approval, transfer-agent reconciliation, sanctions screening, valuation, liquidity, gas fees, and secondary-market pricing will operate in practice
• Whether the SEC will extend comparable relief to other fund sponsors or address tokenized fund classes through broader rulemaking

What it means for an advisor

• Update product diligence if the Tokenized Class becomes available, including review of wallet eligibility, custody, transfer restrictions, liquidity, valuation, fees, reconciliation, cybersecurity, and service-provider controls
• Confirm that client communications distinguish fund-issued shares and NAV-based transactions from permitted secondary transactions that may occur above or below NAV
• Verify actual launch terms and intermediary capabilities before recommending, trading, or custodying the tokenized shares; the order does not by itself establish that the class has launched

Previous interpretation

The public ledger previously characterized ARK's requested tokenized share-class relief as a pending exemptive application that the Commission had not granted.