F/m Investments Seeks SEC Approval for First Tokenized ETF Shares

VADODARA, January 21, 2026 — U.S. ETF manager 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), according to a report by The Block. This marks the first formal SEC relief request for tokenizing a registered investment company's ETF shares, representing a critical test for blockchain integration into traditional finance frameworks. Latest crypto news indicates this move could reshape settlement efficiency and liquidity profiles for institutional investors.

Market Context & Background

Tokenization of real-world assets has emerged as a dominant narrative in 2025-2026, with projections from Boston Consulting Group estimating a $16 trillion market by 2030. Underlying this trend is the search for alpha through operational efficiency gains in settlement and custody. Historical cycles suggest that regulatory approval for such hybrid structures often precedes significant capital inflows, similar to the pattern observed after the SEC's approval of spot Bitcoin ETFs in 2024. Consequently, F/m's filing operates within the established legal framework of the Investment Company Act of 1940, aiming to maintain identical CUSIP, rights, and economic conditions as traditional shares while leveraging a permissioned blockchain ledger for transfer and settlement.

Related developments in the tokenization space include Cork Protocol securing $5.5 million in seed funding to build a tokenization risk layer, highlighting growing infrastructure investment. Market structure currently shows extreme fear conditions, with the Crypto Fear & Greed Index at 24/100, creating a potential liquidity grab opportunity if regulatory clarity improves.

What Happened?

According to the official SEC filing, F/m Investments proposes to record ownership of TBIL ETF shares on a permissioned blockchain. The company stated this structure would ensure board oversight, daily transparency, and third-party custody and auditing, operating within existing regulatory guardrails. Market analysts note this is not a decentralized finance (DeFi) play but a controlled integration aimed at reducing settlement times from T+2 to near-instantaneous on-chain finality. The firm assured that tokenized shares would maintain identical characteristics to traditional counterparts, avoiding creation of a new security class.

Technical Analysis & Price Action

Market structure suggests Bitcoin's current price of $90,143 sits within a consolidation range between $85,000 support and $95,000 resistance. The 50-day moving average at $88,500 provides dynamic support, while RSI readings at 48 indicate neutral momentum. A bullish invalidation level is set at $82,000, where a break below would signal continued extreme fear dominance and potential retest of the 200-day MA. Conversely, a bearish invalidation level sits at $98,000, where reclaiming this zone would confirm strength and potentially trigger a gamma squeeze in options markets. Volume profile analysis shows significant accumulation between $87,000-$90,000, suggesting institutional interest at these levels.

By The Numbers

Why It Matters

This development matters because it represents the first formal test of SEC willingness to approve blockchain integration for registered investment companies. Institutional impact could be profound: approved tokenization would enable near-instant settlement, reduced counterparty risk, and programmable compliance through smart contracts. According to Ethereum.org documentation on token standards, such permissioned implementations could leverage ERC-3643 or similar frameworks for regulatory compliance. Retail impact is more indirect but significant, as successful approval would validate blockchain utility beyond speculative assets, potentially driving mainstream adoption and liquidity into crypto infrastructure.

Community Sentiment

Industry observers on X/Twitter express cautious optimism. One quantitative analyst noted, "If approved, this creates a blueprint for trillions in traditional assets to migrate on-chain." Others highlight the regulatory hurdle, with comments emphasizing the SEC's historical caution toward crypto innovations. Market sentiment remains bifurcated: bulls see this as inevitable convergence, while bears point to ongoing extreme fear conditions and recent warnings like Compass Point advising against dip-buying until $98k is reclaimed.

Price Prediction / Future Outlook

Bullish Case (Approval Scenario): SEC approval would likely trigger a sentiment shift from extreme fear to neutral/greed, with Bitcoin targeting $95,000-$100,000 as institutional capital anticipates broader tokenization adoption. Ethereum could outperform due to its smart contract infrastructure, potentially testing $6,500 resistance. Tokenization-focused altcoins might see increased volume and liquidity inflows.

Bearish Case (Rejection Scenario): SEC rejection would reinforce regulatory uncertainty, potentially pushing Bitcoin toward the $82,000 invalidation level and extending extreme fear conditions. Market structure would likely see continued pressure from macro factors, including recent comments on Federal Reserve policy creating headwinds. A break below $85,000 support could trigger stop-loss cascades and test the 200-day moving average near $80,000.