ARK Investment Management has submitted an exemptive application to the SEC requesting permission to record ownership of a new share class of its ARK Venture Fund on distributed ledger technology and to enable trading on registered alternative trading systems. Hearing requests must be filed by September 18, meaning the SEC's initial posture on the application will become visible within days.
For the crypto repo desk, the SEC's treatment of this application will set a significant precedent for how tokenized fund interests are classified and transferred, directly informing what structures Armada can accept as collateral and how custody of such instruments is handled under its no-rehypothecation policy. Legal counsel should be briefed on the application's scope and the implications of potential exemptive relief for Armada's tokenized collateral eligibility framework.