Cathie Wood Says Ark Invest Wants to Tokenize Its Funds — Here’s Why It’s a Big Deal
Cathie Wood, the CEO of Ark Invest and one of the most well-known names in crypto investing, is ready to bring her firm’s funds on-chain. But for now, U.S. regulations are holding her back.
Speaking at the Digital Asset Summit in New York on Tuesday, Wood said, “We think tokenization is going to be huge. We’d love to be able to tokenize our Venture Fund (ARKVX) or our [Digital Asset] Revolution Fund.”
She added, “I think the regulations are starting to open up in a way that will allow us to do that. So we’d like to seize the moment.”
That moment hasn’t arrived just yet. The U.S. still doesn’t have a clear set of rules around tokenizing assets. And that’s a problem for big players like Ark Invest, who want to move ahead but can’t until they know they’re not breaking any laws.
What is tokenization, and why does it matter?
Tokenization basically means turning something into a digital token that lives on a blockchain. Instead of owning a traditional share in a fund like ARKVX, for example, you’d own a digital token that represents your share. This token could be traded 24/7, settled instantly, and moved easily across platforms. It’s like turning a mutual fund into a crypto token.
Imagine if Netflix stock was available to trade on your phone at 2am on a Sunday with no middleman, no waiting period, and no paperwork. That’s what tokenized assets can do — make investing as easy as sending a text message.
It also opens doors for people who’ve never had access before. In some countries, it’s hard to invest in U.S. funds due to restrictions, bank fees, or a lack of infrastructure. Tokenization breaks down those walls. A teenager in Nigeria or a farmer in Brazil could one day invest in an Ark fund with just a smartphone and internet connection.
What’s holding everyone back?
The short answer? Regulation.
In the U.S., the SEC hasn’t laid out a clear playbook for how asset managers like Ark can tokenize their products. These tokenized funds are considered “security tokens,” which means they fall under strict securities laws. Right now, launching one in the U.S. is risky because it’s unclear what’s allowed and what’s not.
That’s why Ark hasn’t made the move yet — even though Wood clearly wants to. And Ark isn’t alone.
Coinbase, one of Ark’s biggest holdings and the largest crypto exchange in the U.S., is also exploring tokenization. At a Morgan Stanley event earlier this month, Coinbase CFO Alesia Haas said the company is talking to the SEC about creating a security token.
It’s not the first time they’ve tried. Coinbase once attempted to go public with a security token back in 2020 but dropped the plan after hitting regulatory roadblocks.
Jesse Pollack, the founder of Base (Coinbase’s Layer 2 blockchain built on Ethereum), followed up on social media to clarify that nothing is set in stone. “We are in an exploratory phase and working to understand what needs to be unlocked from a regulatory perspective to bring assets like $COIN to @base in a safe, compliant, future looking way,” he wrote.
Why this could be big
If Ark and Coinbase succeed in bringing real financial assets on-chain, it could trigger a wave of similar moves by other institutions. Imagine a future where every ETF, stock, bond, or even private startup investment is tokenized and tradable on a blockchain.
We already see hints of this happening globally. In the Middle East, tokenized gold is taking off. In Asia, regulators are warming up to digital bonds and fund shares. BlackRock CEO Larry Fink has even said he wants to move “trillions of dollars” onto blockchains.
Cathie Wood’s push matters because Ark Invest isn’t just any investment firm — it’s one of the most recognized names in innovation-focused investing. Ark’s backing gives tokenization legitimacy in the eyes of Wall Street.
It also shows that crypto is growing up. While the early 2010s were about experimenting with Bitcoin, and the late 2010s saw hype around NFTs and meme coins, the next big phase could be about real-world financial assets going digital. That’s the boring but powerful stuff.
What could this look like?
Let’s say Ark successfully tokenizes its Digital Asset Revolution Fund. Instead of buying into it through a traditional broker, an investor could buy a token representing ownership in the fund, likely on a regulated crypto exchange. That token could earn returns, be traded instantly, or even be used as collateral in a DeFi app.
And what if other asset managers follow suit? Vanguard’s ETFs, private real estate funds, or retirement plans could all be tokenized, traded globally, and made accessible to anyone with internet — no paperwork, no delays.
It’s not hard to imagine a world where this becomes normal. But for now, we’re still waiting on regulators to give the green light.
Why Wood’s timing might be right
Wood is optimistic that regulators are finally starting to see the light. “I think the regulations are starting to open up in a way that will allow us to do that,” she said.
She’s not alone. The Biden administration has shown signs of warming up to blockchain innovation, and if Trump wins re-election — his team has already floated ideas like a U.S. Bitcoin reserve — the pace of crypto regulation could accelerate.
For Ark, it’s about being ready. If and when the rules change, Wood wants to be first in line. That’s why her comments this week matter more than just wishful thinking — they signal where the industry is heading. And soon, your next investment might come not from Wall Street, but straight from the blockchain.
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