Internet finance infrastructure separates asset custody duration from investor holding duration through token-based secondary trading on existing exchange infrastructure. This replicates the closed-end fund separation at radically lower issuance and transfer cost.

In traditional closed-end funds, the investor's capital is locked for the fund's duration — typically 10 years for venture. This creates the illiquidity premium but also constrains the investor base to those who can tolerate decade-long lockups. Internet finance replicates the closed-end fund's structural advantage (the manager controls asset custody duration independently of investor behavior) while eliminating the liquidity penalty through token-based secondary trading on existing DEX infrastructure. The fund token represents a share of the fund's NAV. The fund manager holds the underlying assets for as long as the investment thesis requires. But the token trades on secondary markets, so investors who need liquidity can exit to other buyers without forcing the fund to liquidate positions. This is exactly the separation that Stein (2004) identified as the key tension in open-end vs. closed-end fund design — open-end funds offer liquidity but create redemption pressure that distorts investment decisions; closed-end funds protect the portfolio but trap investors. Token-based secondary trading resolves the tradeoff at radically lower issuance and transfer cost than traditional closed-end fund listings.