Odaily Planet News: F/m Investments, an ETF issuer with approximately $18 billion in assets under management, has applied for regulatory approval from the U.S. Securities and Exchange Commission (SEC). The company plans to tokenize shares of its ETFs and record them on a permissioned blockchain ledger. The product it intends 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 exemptions related to the tokenization of ETF shares from a registered investment company. The company noted that if approved, existing TBIL ETF shares will be represented on a permissioned blockchain ledger using the same CUSIP code, and will maintain the same rights, fees, voting rights, and economic terms as the existing ETF shares. They will remain subject to regulation under the Investment Company Act of 1940.
The company also emphasized that the relevant arrangements will continue to maintain board oversight, daily information disclosure, and third-party custody and audit mechanisms. Alexander Morris, CEO of F/m Investments, stated that the tokenization trend of traditional financial instruments is inevitable. (The Block)