SEC Filing Document

Company: T. Rowe Price Active Crypto ETF
Ticker: 
CIK: 2089855
Filing Type: S-1
Document Type: S-1
Date Filed: 2025-10-22
Accession Number: 0001999371-25-015832
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2089855/000199937125015832/activecrypto-s1_102225.htm

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and adversely impact an investment in the Fund The Sponsor relies heavily on key personnel to manage its activities. These key personnel intend to allocate their time managing the Fund in a manner that they deem appropriate. If such key personnel were to leave or be unable to carry out their present responsibilities, it may have an adverse effect on the management of the Sponsor. Shareholders have no right or power to take part in the management of the Fund. Accordingly, no investor should purchase Shares unless such investor is willing to entrust all aspects of the management of the Fund to the Sponsor. In addition, certain personnel performing services on behalf of the Sponsor will be shared with the affiliates of the Sponsor, including with respect to execution, Fund operations and legal, regulatory and tax oversight. Such individuals will devote a small percentage of their time to those activities.

Additionally, there can be no assurance
that all of the personnel who provide services to the Fund will continue to be associated with the Fund for any length of time. The loss
of the services of one or more such individuals could have an adverse impact on the Fund’s ability to realize its investment objective.

The liability of the Sponsor and
the Trustee are limited, and the value of the Shares will be adversely affected if the Fund is required to indemnify the Trustee or the
Sponsor

Under the Trust Agreement, the Trustee
and the Sponsor are not liable, and have the right to be indemnified, for any liability or expense incurred absent gross negligence or
willful misconduct on the part of the Trustee or Sponsor, as the case may be. That means the Sponsor may require the assets of the Fund
to be sold in order to cover losses or liability suffered by the Sponsor or by the Trustee. Any sale of that kind would reduce the NAV
of the Fund and the value of its Shares.

The Fund may incur higher fees and
expenses upon renewing existing or entering into new contractual relationships

The arrangements between clearing brokers
and counterparties on the one hand and the Fund on the other generally are terminable by the clearing brokers or counterparty upon notice
to the Fund. In addition, the agreements between the Fund and its third-party service providers, such as the Custodians, are generally
terminable at specified intervals. Upon termination, the Sponsor may be required to renegotiate or make other arrangements for obtaining
similar services if the Fund intends to continue to operate. Comparable services from another party may not be available, or even if available,
these services may not be available on the terms as favorable as those of the expired or terminated arrangements.

The Fund is actively managed

The Sponsor’s judgments about
the attractiveness, value, or potential appreciation of the Fund’s investments may prove to be incorrect. The Fund could underperform
other ETPs (whether actively managed or otherwise) with a similar index as the Index or similar investment program if the Fund’s
investment selections or overall strategies fail to produce the intended results. Regulatory, tax, or other developments may affect the
investment strategies available to the Sponsor, which could adversely affect the ability to implement the Fund’s overall investment
program and achieve the Fund’s investment objective. The Fund uses a reference rate for pricing crypto assets, which is different
from the reference rate used by the Index. Therefore, there may be performance differences attributed to the different reference rates,
as well as the difference in crypto assets and weights of those crypto assets of the Fund compared to the Index Constituents.

Investors may be adversely affected
by an overstatement or understatement of the NAV calculation of the Fund due to the valuation method employed on the date of the NAV calculation

The Fund’s investments may be
valued using techniques or reference rates other than reliance on the price established by the Index. The value established by using the
Index may be different from what would be produced through the use of another methodology or reference rate. The value of crypto asset
investments valued using techniques or reference rates other than those employed by the Index, may differ from the value of the Index
determined by reference to the Index. See “Business of the Fund — Calculating NAV.”

Fund assets may be depleted if investment
performance does not exceed fees

Over time, the Fund’s assets
could be depleted if investment performance does not exceed fees paid by the Fund.

The Fund expects to pay the Sponsor
a Management Fee and pay certain Fund expenses, see “Business of the Fund – Fees and Expenses.” Creation with cash may
cause the Fund to incur certain costs including brokerage commissions and redemptions of creation units with cash may result in the recognition
of gains or losses that the Fund might not have incurred if it had made redemptions in-kind.

General expenses of the Fund will be
allocated to the Fund as determined by the Sponsor in its discretion. The Fund may be required to indemnify the Sponsor, and the Fund
and/or the Sponsor may be required to indemnify the Fund’s service providers under certain circumstances. Unless such expenses are
specifically attributable the Fund or arise out of the Fund’s operations, any such expenses will be allocated by the Sponsor using
a pro rata methodology that allocates certain Fund expenses to the Fund. Expenses paid by Sponsor are not subject to any caps or limits.

Investors may not be able to buy
or sell Shares of the Fund through their current brokerages

Because of volatility and other risks
associated with crypto-related investments, brokerage firms may limit or not permit trading in such investments. Because of current or
future brokerage policies regarding crypto-linked securities, investors could have difficulty selling Shares through their brokerage and
potentially face restrictions when or how they could trade their Shares.

The Fund may have credit risk, operational
risk, and fraud risk buying or selling crypto assets

The Fund may transact with crypto trading
platforms and over-the-counter crypto market makers. The Fund may take on credit risk when it trades crypto assets, and its contractual
rights with respect to such transactions may be limited. It is possible that, through computer or human error, or through theft or criminal
action, the Fund’s assets could be transferred in incorrect amounts or to unauthorized third parties. To the extent that the Fund
is unable to seek a corrective transaction with such third party or is incapable of identifying the third party which has received the
Fund’s crypto assets (through error or theft), the Fund will be unable to recover incorrectly transferred assets, and such losses
will negatively impact the Fund. In the event the Fund is unable to recover any incorrectly transferred assets, the Fund will not be liable
to the Shareholders for any such losses.

If a custodial agreement or an Authorized
Participant agreement is terminated or a Custodian or an Authorized Participant becomes insolvent or fails to provide services as required,
the Sponsor may need to find and appoint a replacement custodian or Authorized Participant, which could pose a challenge to the safekeeping
of the Fund’s assets, the Fund’s ability to create and redeem shares and the Fund’s ability to continue to operate may
be adversely affected

The Fund is dependent on the Crypto
Custodian to operate. The Crypto Custodian performs essential functions in terms of safekeeping the Fund’s crypto assets in the
custodial wallets. If a Crypto Custodian fails to perform the functions it performs for the Fund, the Fund may be unable to operate or
create or redeem Baskets, which could force the Fund to liquidate or adversely affect the price of the Shares.

If any Crypto Custodian were to be
required or choose, as a result of a regulatory action (including, for example, the litigation initiated by the SEC), to restrict or curtail
the services it offers, it could negatively affect the Fund’s ability to operate or process creations or redemptions of Baskets,
which could force the Fund to liquidate or adversely affect the price of the Shares.

Any prioritization by the Crypto Custodian
away from the Fund could result in inadequate attention, delays, or comparatively unfavorable commercial terms for the Fund. Such actions
could harm the Fund’s operations, reduce the efficiency of its trading activities, and negatively affect the value of the Shares.