The recent launch of the Fundrise Innovation Fund on the New York Stock Exchange marks a significant expansion into the late-stage private market sector. This closed-end fund, which features private shares in companies like Anthropic, Databricks, and SpaceX, began trading at $31 per share on March 19 and witnessed a surge to $575 shortly thereafter. However, the stock closed the week at $173, reflecting a nearly 34% decline, with an additional 5.9% drop in after-hours trading.
In a strategic move to enhance exposure in this market, the xStocks platform has partnered with alternative investment service Fundrise to introduce a tokenized asset known as VCXx. This asset is expected to go live imminently. However, the partnership faces scrutiny following a report from Citron Research, which alleged that Fundrise Advisors LLC is under investigation by the SEC for paid solicitation practices and called for regulatory oversight regarding influencer promotions of VCX.
Despite the challenges, Fundrise CEO Ben Miller has defended the fund's strategy against what he describes as a baseless smear campaign. Meanwhile, the tokenized asset market continues to grow, with overall value surpassing $1 billion as platforms gain traction among investors.