SEC Opens Door to Tokenized, Exchange-Listed Interval Fund Share Classes
The SEC published a notice on an application to let a registered interval fund simultaneously offer exchange-listed and blockchain-tokenized share classes alongside its periodic repurchase shares.
Under the application, a 1940 Act interval fund would add an exchange-listed share class providing continuous intraday liquidity and a tokenized class traded on ATSs or other quotation media, while retaining its existing repurchase-only interval fund classes. The relief would amend a November 2025 exemptive order that conditioned multiclass relief on shares not being listed or traded on any secondary market, a condition the SEC has consistently imposed on recent interval fund and BDC multiclass orders. Applicants are seeking exemptions from Investment Company Act Sections 18(a)(2), 18(c), and 18(i), Rule 23c-3, and Section 17(d)/Rule 17d-1, with additional conditions requiring that any premium or below-NAV issuance apply uniformly across all share classes. The hearing-request window runs through September 18, 2026; an order will be granted unless the SEC calls a hearing. For fund sponsors, this signals potential SEC openness to hybrid registered products that broaden retail and institutional access to private-market strategies while still permitting holdings of illiquid assets, and continued engagement with blockchain-based market infrastructure for regulated funds.