ARK Invest has launched the ARK Venture Fund (ARKVX) as a token on the Ethereum blockchain, offering crypto investors exposure to high-profile holdings like SpaceX, OpenAI, and Anthropic. The fund, announced on September 24, is only available to U.S. investors with verified Securitize accounts, a crypto wallet, and at least $500 in USDC stablecoin. Each ARKVX token represents a share in the fund, which charges a 2% transaction fee and a 2.9% annual expense ratio, significantly higher than ARK's other offerings.
The fund's top holdings include SpaceX (7.1%), Kalshi (5.8%), OpenAI (5.4%), and Anthropic (4.1%). However, the tokens are not freely tradable; investors can only redeem them through quarterly repurchase offers, which are capped at 5% of outstanding shares. This structure differs from traditional ETFs, which can be sold at any time during market hours.
Tax implications also differ for investors. Swapping Ether for USDC to buy ARKVX triggers a capital gain or loss, and quarterly repurchases limit the ability to harvest tax losses. ARK Invest notes that retail investors can already access the fund through conventional platforms, making the crypto version less necessary. The private stakes in OpenAI and Anthropic pose both opportunities and risks, as their valuations depend on future IPOs, which could either exceed or fall short of current estimates.
While the fund offers unique exposure to private tech giants, the high fees and limited liquidity make it a less attractive option for most investors. Experts suggest waiting for the IPOs of OpenAI and Anthropic to buy shares directly, avoiding the added costs and complexity of the tokenized fund.