F/m Investments seeks SEC approval for tokenized ETF shares

F/m Investments seeks SEC approval to tokenize shares of its U.S. Treasury 3-Month Bill ETF on a permissioned blockchain, maintaining regulatory compliance. Approval could set a key industry precedent.

F/m Investments has formally requested approval from the U.S. Securities and Exchange Commission (SEC) to tokenize shares of its U.S. Treasury 3-Month Bill ETF (TBIL). The proposal would record share ownership on a permissioned blockchain ledger, while preserving all rights, fees, and economic terms identical to traditional ETF shares, including the same CUSIP identifier. The initiative is designed to fully comply with the Investment Company Act of 1940, ensuring ongoing regulatory oversight, board governance, third-party custody, and daily transparency. This marks the first formal application to tokenize shares of a registered investment company, potentially setting a precedent for integrating blockchain with traditional financial products. Industry participants are closely monitoring the SEC's response, as approval could accelerate the adoption of tokenized securities and hybrid market infrastructure. The proposal highlights the growing momentum to bridge regulated finance with digital technology while upholding established compliance standards.