The recently public Fundrise Innovation Fund, which holds stakes in private tech firms like Anthropic, Databricks and SpaceX, is being tokenized.xStocks has partnered with Fundrise to bring the fund onchain as a single token VCXx. The fund’s stock debuted at $31 but surged to $575, then fell sharply after a short seller report. Meanwhile, the total value of tokenized stocks onchain has surpassed $1 billion.
The tokenized equities framework xStocks has teamed with alternative investment platform Fundrise to bring the newly public Fundrise Innovation Fund onchain. The single tokenized asset VCXx is expected to go live on the xStocks platform in the coming days. The move expands exposure to late-stage private market companies.
The closed-end fund began trading on the New York Stock Exchange on March 19 at a $31 debut price. Its portfolio includes private shares of tech companies like Anthropic, Databricks and SpaceX, and its stock surged to as high as $575 per share. However, a Thursday report by short seller Citron Research said Fundrise Advisors LLC faced SEC charges in 2023 over paid solicitation activities.
Citron called on regulators to examine whether the firm is currently compensating influencers to promote VCX. The shares ended the week at $173, down almost 34% on Friday before shedding another 5.9% in after-hours activity. Fundrise Innovation Fund co-founder and CEO Ben Miller told CNBC on Friday that critics were mounting an unfounded smear campaign. He defended the fund’s strategy and its effort to expand access to private tech companies.
Tokenized stocks pushed past $1 billion in total value onchain earlier this month. Data from RWA.xyz shows the value climbing as platforms attract more investor trading and liquidity. Much of that activity is concentrated among a small number of operators.
RWA.xyz data shows that Ondo holds about 58% of the market. Tokenized stock products issued under the xStocks platform account for roughly 24%, forming an early duopoly. Foresight Ventures in a March 10 report posited that the market is consolidating around these early leaders. It cited regulatory barriers, liquidity advantages and differing tokenization models as key factors shaping competition.
