xStocks Platform Introduces Tokenized Version of Private Tech Shares Fund
Fundrise Innovation Fund, a closed-end investment vehicle with holdings in unlisted tech giants such as SpaceX, Databricks and Anthropic, made its public debut this month.
The tokenized equities platform xStocks has partnered with Fundrise, an alternative investment platform, to launch an onchain version of the recently public Fundrise Innovation Fund, providing broader access to late-stage private market company investments.
According to a Friday announcement, the tokenized asset VCXx, representing a single fund offering, is anticipated to launch on the xStocks platform within the next several days.
The decision to tokenize Fundrise follows closely after the closed-end fund commenced trading on the New York Stock Exchange, featuring a portfolio that encompasses private equity stakes in major technology firms such as Anthropic, Databricks and SpaceX. Initial trading activity witnessed the stock jump dramatically from its March 19 opening price of $31 to reach peaks of $575 per share.
Nevertheless, short seller Citron Research released a critical analysis on Thursday, noting that Fundrise Advisors LLC had been subject to SEC charges in 2023 related to paid solicitation activities. Citron urged regulatory authorities to investigate whether the company is presently paying influencers to promote VCX. Share prices concluded the week at $173, plunging nearly 34% on Friday, followed by an additional 5.9% decline during after-hours trading.
Speaking to CNBC on Friday, Fundrise Innovation Fund co-founder and CEO Ben Miller characterized the criticism as a baseless smear campaign and stood by the fund's investment approach and its mission to democratize access to private technology companies.
Tokenized stocks top $1B in total value onchain
The tokenized stock market surpassed the $1 billion threshold in aggregate onchain value earlier this month as growing investor appetite drives expansion in the rapidly developing real-world asset (RWA) sector.
According to data from RWA.xyz, the total value of tokenized equities has climbed beyond the $1 billion milestone, with platforms delivering blockchain-based access to conventional stocks drawing increased investor participation and liquidity flows.
However, it should be noted that the bulk of this activity remains concentrated among a limited number of market participants. Data from RWA.xyz indicates that Ondo controls approximately 58% of the market share, while tokenized equity products launched through the xStocks platform represent around 24%, establishing what amounts to an early duopoly within the sector.
In a March 10 report, Foresight Ventures suggested that the market is experiencing consolidation around these pioneering players, identifying regulatory hurdles, liquidity benefits and varying tokenization approaches as critical factors influencing competitive dynamics in the sector.
