# T. Rowe Price Active Crypto ETF

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/T. Rowe Price Active Crypto ETF).

## Overview

T. Rowe Price Active Crypto ETF is a Delaware statutory trust offering an actively managed exchange-traded product focused on long-term capital growth through investments in crypto assets. Sponsored by T. Rowe Price Sponsor LLC and administered by affiliated T. Rowe Price entities, the Trust holds a diversified portfolio of commodity crypto assets and trades on NYSE Arca under the symbol TKNZ.

## Products & services

• Actively managed crypto asset ETF shares
• Diversified portfolio of commodity crypto assets
• Fundamental and model-based crypto asset selection
• Cash, cash equivalents, and payment stablecoins
• Continuous creation and redemption of ETF shares

- **Crypto asset portfolio** (90%) — A diversified, actively selected basket of eligible commodity crypto assets.
- **Cash and stablecoin holdings** (5%) — Cash, cash equivalents, and payment stablecoins support expenses and trading.
- **Exchange-traded fund access** (5%) — Exchange-listed shares provide investors with regulated market access to the strategy.

- Actively managed crypto asset ETF shares
- Diversified portfolio of commodity crypto assets
- Fundamental and model-based crypto asset selection
- Cash, cash equivalents, and payment stablecoins
- Continuous creation and redemption of ETF shares

## Customers

The Trust serves investors seeking diversified exposure to crypto assets through a single exchange-traded security rather than directly holding multiple digital assets. Retail and institutional investors can buy and sell shares on NYSE Arca, while authorized participants create or redeem 10,000-share Creation Units for cash or in-kind transactions. The structure also appeals to investors seeking professional portfolio construction, custody, valuation, and operational support from T. Rowe Price and its service providers.

- **Retail ETF investors** (primary) — Buy exchange-listed shares for diversified crypto exposure without directly custodying individual assets.
- **Institutional investors** (primary) — Use the ETF structure for portfolio allocation, trading access, and operational simplicity.
- **Financial advisers and platforms** (secondary) — Use a managed listed vehicle to incorporate crypto exposure into client portfolios.
- **Authorized participants** (secondary) — Create and redeem Creation Units to support primary-market liquidity and ETF trading.

- Retail investors seeking diversified crypto exposure
- Institutional investors using an exchange-traded vehicle
- Authorized participants creating or redeeming Creation Units
- Advisers seeking managed crypto exposure for client portfolios
- Investors preferring third-party custody and administration

## Geography

The Trust is organized in Delaware and operates within the U.S. exchange-traded fund and custody infrastructure, with shares listed on NYSE Arca. Its investment exposure is global because the portfolio values crypto assets traded across spot exchange platforms, while custody and administration are provided by U.S.-based service providers including Anchorage Digital Bank, State Street, and T. Rowe Price affiliates.

- Delaware statutory trust structure
- NYSE Arca listing provides U.S. exchange access
- Crypto assets are valued using global spot-market activity
- Anchorage Digital Bank safeguards crypto assets
- State Street supports cash custody and transfer services

## Strategy

The Trust seeks to outperform the FTSE Crypto US Listed Index through active selection rather than index replication. Its process combines a fundamentally informed model with views on crypto asset fundamentals, valuation, and momentum within a disciplined risk framework. The portfolio generally targets five to fifteen eligible crypto assets, while retaining flexibility to hold cash, stablecoins, or a temporary defensive position when market or liquidity conditions warrant.

- **Active crypto asset selection** (long-term) — Differentiates the Trust from passive products by seeking excess returns over its benchmark.
- **Portfolio diversification** (medium-term) — Spreading exposure across eligible crypto assets can reduce dependence on a single token.
- **ETF liquidity and operational access** (short-term) — Exchange trading and Creation Unit processing make crypto exposure easier to transact and administer.

- Target active returns above the FTSE Crypto US Listed Index
- Combine fundamental analysis with model-based selection
- Allocate across approximately five to fifteen crypto assets
- Use valuation, momentum, and risk criteria in selection
- Retain cash or stablecoins for trading and redemptions
- Avoid leverage, derivatives, and securities classified as investments

## Risks

The Trust’s performance is directly exposed to extreme crypto asset price volatility, market liquidity, custody, cybersecurity, and regulatory risks. Active management may underperform the benchmark, while the limited portfolio and prohibition on leverage or derivatives constrain available risk-management tools. Valuation differences between shareholder NAV and GAAP fair value can also affect reported results and investor comparability.

- **Crypto asset market volatility** [critical] — The Trust concentrates exposure in highly volatile digital assets, creating substantial NAV fluctuation and potential capital loss.
- **Market liquidity and trading disruption** [high] — Fragmented or stressed spot markets may make assets difficult to value, buy, sell, or use for redemptions.
- **Custody and cybersecurity** [high] — Loss, theft, private-key compromise, or service disruption at crypto custodians could impair portfolio assets.
- **Regulatory and legal uncertainty** [high] — Changes in crypto asset regulation, classification, trading access, or taxation could limit the strategy or investor demand.
- **Active management and benchmark risk** [medium] — Security selection and portfolio positioning may fail to outperform the FTSE Crypto US Listed Index.

- Crypto prices can experience severe and rapid declines
- Thin or fragmented markets can impair trading and liquidity
- Custody or cyber incidents could cause asset losses
- Regulatory changes could restrict crypto asset markets
- Active decisions may underperform the benchmark
- NAV and market prices can diverge during stressed markets

## Accounting

The Trust qualifies as an investment company for accounting purposes and reports under ASC 946, while crypto assets are measured at fair value under ASC 820. Its shareholder transaction reference rates use Lukka pricing around 4:00 p.m. Eastern Time, whereas financial statements use principal-market exchange prices at 11:59 p.m. Eastern Time, so reported period-end NAV may differ from transaction NAV. Fair-value source selection, market hierarchy, and judgments about unreliable or unavailable reference rates are therefore critical to reported assets, NAV, and investment results.

- **Crypto asset fair value measurement** — Affects total assets, NAV, unrealized gains and losses, and reported investment performance.
- **NAV reference-rate differences** — Creates potential differences between shareholder NAV and period-end GAAP NAV.
- **Fair-value estimates for unavailable prices** — Introduces judgment and estimation risk into reported valuations.
- **Investment-company accounting** — Shapes comparability with operating companies and other investment vehicles.

- ASC 946 governs investment-company financial reporting
- ASC 820 fair value affects assets, NAV, and results
- Lukka reference rates support shareholder NAV calculations
- GAAP prices may differ from transaction-date NAV
- Unreliable markets can require administrator fair valuation
- Crypto price movements flow directly into investment results

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*Last updated: 2026-09-08T07:02:20.795895+00:00*