Ethereum Tokenization of ARK Venture Fund Raises Questions About Exit Options
ARK Invest has partnered with Securitize to tokenize its Venture Fund on Ethereum. This move allows eligible investors to hold tokenized interests in ARKVX, a managed fund that invests in private and public technology companies.
The tokenized shares represent exposure to the fund's investments, giving holders a stake in ARKVX. Securitize will handle the on-chain issuance and investor experience.
However, investors still face limited exit options when trying to sell their shares. The fund offers to buy back up to 5% of its outstanding shares at net asset value each quarter, but only through quarterly repurchase requests or potential future secondary sales.
No trading venue or guaranteed buyer is announced, and the shares are described as unlisted and illiquid. Regulatory permission may provide another route to buyers in the future, depending on whether trading begins and buyers emerge.