F/m Investments Pursues SEC Clearance to Convert ETF Shares Into Digital Tokens

F/m Investments has taken a historic step forward, filing a landmark request with the U.S. Securities and Exchange Commission (SEC) seeking authorization to tokenize shares of its U.S. Treasury 3-Month ETF (TBIL). This represents an unprecedented move—the first time any investment firm has applied for such an exemption regarding shares of registered investment company holdings. With approximately $18 billion in assets under management, F/m is positioning itself at the forefront of the tokenization revolution in traditional finance.

Tokenizing ETF Shares While Maintaining Regulatory Guardrails

The proposal would enable existing TBIL ETF shares to be represented on a permissioned blockchain network, where ownership would be tracked digitally. Importantly, the tokenized shares would retain their original identity—maintaining the same CUSIP, economic terms, fees, voting rights, and all other benefits as the conventional ETF shares currently offered. This means investors would experience no loss of protections or functionality; only the underlying infrastructure would change.

Comprehensive Protections for Digital ETF Shares Remain In Place

The regulatory framework ensures investor protection remains paramount. These tokenized shares would continue to fall under the Investment Company Act of 1940, the cornerstone legislation governing mutual funds and ETFs. The structure incorporates board-level oversight, transparent daily disclosures, third-party custody arrangements, and independent auditing. In essence, F/m is not asking regulators to compromise investor safeguards—merely to approve a new technological delivery mechanism for the same regulated shares.

Wall Street Embraces the Digital Transformation of Securities

F/m’s initiative arrives amid broader momentum across the financial industry. This week, the New York Stock Exchange announced its own roadmap to build infrastructure for trading tokenized U.S. stocks and ETF shares with on-chain settlement capabilities. However, these developments still hinge on regulatory approval, signaling that traditional finance is moving cautiously but deliberately toward digital asset infrastructure. If the SEC grants F/m’s exemption, it could unlock a wave of similar applications from other asset managers, marking a pivotal moment when blockchain technology becomes embedded in mainstream investment vehicles.