F/m Investments, an ETF issuer with approximately $18 billion in assets under management, has applied to the U.S. Securities and Exchange Commission (SEC) for regulatory approval to tokenize its ETF shares and record them on a permissioned blockchain ledger. The product the company plans to tokenize is its 3-month U.S. Treasury Bill ETF (TBIL, Nasdaq: TBIL). F/m Investments stated that this is the first time an institution has explicitly applied to the SEC for an exemption regarding the tokenization of ETF shares of a registered investment company. The company stated that if approved, existing TBIL ETF shares will be represented on-chain on the permissioned ledger using the same CUSIP code, and will remain consistent with existing ETF shares in terms of rights, fees, voting rights, and economic terms, still subject to the Investment Company Act of 1940. The company also emphasized that the arrangement will retain board oversight, daily disclosure, and third-party custody and auditing mechanisms. F/m Investments CEO Alexander Morris stated that the tokenization trend of traditional financial instruments is inevitable. (The Block)