Ark Invest CEO Cathie Wood on Wednesday announced plans to bring the company's funds on-chain through tokenization, signaling a strategic push into digital assets.

What Happened: Speaking at the Digital Asset Summit in New York on Tuesday, Wood expressed enthusiasm for transforming traditional investment vehicles, specifically mentioning the Venture Fund (ARKVX) and Digital Asset Revolution Fund, into blockchain-based tokens.

Her comments reflect Ark Invest's ambition to capitalize on the growing tokenization trend, despite regulatory uncertainties in the U.S., while she also issued a cautionary note about the risks of meme coins.

Wood highlighted the potential of tokenization to reshape the financial landscape, stating, "We think tokenization is going to be huge."

She detailed Ark's interest in tokenizing its funds, saying, "We'd love to be able to tokenize our Venture Fund (ARKVX) or our [Digital Asset] Revolution Fund."

She acknowledged the challenges posed by the lack of a clear regulatory framework for security tokens in the U.S., which has hindered firms from launching such products in a market some project could reach multi-trillion-dollar status by 2030.

Still, Wood sees progress, noting, "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."

Also Read: Bitcoin Is ‘Past The Bull Cycle Peak,’ Top Analyst Warns

Why It Matters: Speaking with Coin Bureau, Wood addressed the speculative frenzy surrounding meme coins, warning investors of potential pitfalls.

She predicted significant losses, stating, "There will be some fearsome declines in the prices of some of these meme assets," and emphasized that regulators like the U.S. Securities and Exchange Commission are not responsible for protecting investors in this space.

Industry experts estimate that tokenization could unlock trillions of dollars in traditional and alternative assets by the end of the decade.

However, Wood's remarks highlight the dual reality facing the crypto sector: while areas like tokenization are poised for long-term growth, the speculative frenzy surrounding meme coins may soon face a harsh correction.

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