Filing for Tokenized ETF Shares Highlights Market Innovation

One of the investment trends of 2025 that could continue proliferating in 2026 is real-world asset (RWA) tokenization, and it could see greater adoption in the ETF marketplace. F/m Investments, an innovator of ETF products since 2018, announced that they filed an exemptive application with the U.S. Securities and Exchange Commission (SEC) for permission to record ownership of tokenized shares in their US Treasury 3 Month Bill ETF (TBIL) on a permissioned blockchain ledger.

The idea of tokenization has already gone from speculation to application, and this move could help further that transition. In a press release, F/m Investments acknowledged that this could represent the first SEC filing by an ETF issuer for tokenized shares of a registered investment company. True to their penchant for ETF innovation, the move by F/m Investments could spark a trend for more issuers to follow suit with tokenization.

“Tokenization is coming to securities markets whether we file this application or not,” said Alexander Morris, CEO of F/m Investments. “The question is whether it happens inside the regulatory framework investors have relied on for 85 years, or without that set of protections for investors. We’d rather build an on-ramp that marries technological innovation and investor protection than watch from the sidelines.”

ETF Innovation via Tokenization

While still a nascent concept, the investment landscape is becoming more familiar with real-world asset tokenization. It involves transforming tangible assets like real estate, commodities, and financial instruments like ETFs into digital tokens on a blockchain. The potential benefits of tokenization include global access, greater liquidity, and increased transactional speed.

In the case of the TBIL filing, shares of the ETF will be represented on a permissioned ledger using the same Committee on Uniform Securities Identification Procedures (CUSIP) number, which is a unique alphanumeric identifier for a specific financial instrument. Tokenized share owners will retain the same rights, fees, voting rights, and economic terms inherent in shares of TBIL. As noted by F/m Investments, the filing was meant to offer a regulated pathway for tokenized ownership recording and settlement workflows while remaining within the regulatory framework installed by the Investment Company Act of 1940 and Rule 6c-11.

The SEC filing was a collaborative effort with The RBB Fund, which serves as the multi-series trust for F/m Investments. The introduction of tokenized ownership of ETF shares aligns with their focus on governance-led innovation within the ETF framework.

“RBB’s governance-first platform supports responsible innovation within established operational standards,” said David Littleton, co-founder and president of F/m Investments. “Our aim is for TBIL to operate as a standard Rule 6c-11 Treasury ETF while giving institutions a regulated way to move between traditional and token-aware settlement workflows.”

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