F/m Investments applies to tokenize ETF shares, aiming to become the first issuer to promote ETF tokenization

Odaily Planet Daily News reports that ETF issuer F/m Investments, with a management scale of approximately $18 billion, has applied for regulatory approval from the U.S. Securities and Exchange Commission (SEC) to tokenize its ETF shares and record them on a permissioned blockchain ledger. The product the company plans to tokenize is its 3-month U.S. Treasury Bill ETF (TBIL, NASDAQ ticker: TBIL).

F/m Investments stated that this is the first time an institution has explicitly applied to the SEC for a “tokenization exemption for registered investment company ETF shares.” The company said that if approved, the existing ETF shares of TBIL will be represented on the permissioned ledger with the same CUSIP code, and will be consistent with current ETF shares in terms of rights, fees, voting rights, and economic terms, remaining under the regulation of the Investment Company Act of 1940.

The company also emphasized that the arrangement will continue to retain board oversight, daily information disclosure, and third-party custody and auditing mechanisms. F/m Investments CEO Alexander Morris stated that the tokenization trend of traditional financial instruments is inevitable. (The Block)