F/m Investments seeks SEC approval to tokenize ETF shares

U.S. ETF manager F/m Investments has 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 Block reported. The proposal involves recording ownership on a permissioned blockchain ledger, which would allow for the transfer and settlement of shares to be processed on-chain. The company stated this is the first formal request for SEC relief regarding the tokenization of a registered investment company's ETF shares. F/m assured that the tokenized shares would maintain the same CUSIP, rights, fees, voting power, and economic conditions as their traditional counterparts, operating within the framework of the Investment Company Act of 1940. The firm also highlighted that the structure would ensure board oversight, daily transparency, and third-party custody and auditing.