SEC Filing Document

Company: T. Rowe Price Active Crypto ETF
Ticker: 
CIK: 2089855
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2026-04-27
Accession Number: 0001999371-26-009120
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2089855/000199937126009120/activecrypto-s1a_042726.htm

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Regulations to be treated as a United States person. A “Non-U.S. Shareholder” is a holder that is not a U.S. Shareholder nor a partnership for U.S. federal income tax purposes. If a partnership or other entity or arrangement treated as a partnership holds our Shares, the tax treatment of a partner will generally depend upon the status of the partner and the activities of the partnership. If you are a partner of a partnership holding our Shares, the discussion below may not be applicable to you and you should consult your own tax advisor regarding the tax consequences of acquiring, owning and disposing of Shares. EACH PROSPECTIVE INVESTOR IS ADVISED TO CONSULT ITS OWN TAX ADVISOR REGARDING THE U.S. FEDERAL INCOME TAX CONSEQUENCES OF AN INVESTMENT IN SHARES, AS WELL AS ANY APPLICABLE STATE, LOCAL OR FOREIGN TAX CONSEQUENCES, IN LIGHT OF ITS PARTICULAR CIRCUMSTANCES. Tax Classification of the Fund

The Fund is organized and will
be operated as a statutory trust in accordance with the provisions of the Trust Agreement and applicable Delaware law.
Notwithstanding the Fund’s status as a statutory trust, due to the nature of its activities, the Fund will not be classified
as a trust for U.S. federal income tax purposes but rather it is more likely than not it will be classified as a partnership
for U.S. federal income tax purposes. The trading of Shares on the Exchange will cause the Fund to be classified as a
“publicly traded partnership” for U.S. federal income tax purposes. Under section 7704 of the Code, a publicly traded
partnership is generally taxable as a corporation. In the case of an entity not registered under the Investment Company Act (such as
the Fund) and not meeting certain other conditions, however, an exception to this general rule applies if at least 90% of the
entity’s gross income is “qualifying income” for each taxable year of its existence (the “qualifying income
exception”). For this purpose, qualifying income is defined as including, in pertinent part, interest (other than from a
financial business), dividends, and gains from the sale or disposition of capital assets held for the production of interest or
dividends.

In the case of a partnership of which
a principal activity is the buying and selling of commodities other than as inventory or of futures, forwards and options with respect
to commodities, “qualifying income” also includes income and gains from commodities and from such futures, forwards, options,
and, provided the partnership is a trader or investor with respect to such assets, swaps and other notional principal contracts with respect
to commodities.

There is very limited authority on
the U.S. federal income tax treatment of the crypto assets. Based on CFTC determinations that treat bitcoin and ether as commodities under
the CEA, the Fund intends to take the position that the crypto assets qualify as commodities for purposes of satisfying the qualifying
income exception under section 7704 of the Code. Further, in absence of guidance to the contrary, the Fund intends to take the position
that income derived from the staking of crypto assets, if any, constitutes qualifying income for purposes of the qualifying income exception
under section 7704 of the Code. Shareholders should be aware that the Fund’s position is not binding on the IRS, and no assurance
can be given that the IRS will not challenge the Fund’s position, or that the IRS or a court will not ultimately reach a contrary
conclusion, which would result in the material adverse consequences to Shareholders and the Fund discussed below.

The Fund’s taxation as a partnership
rather than a corporation will require the Sponsor to conduct the Fund’s business activities in such a manner that it satisfies
the requirements of the qualifying income exception on a continuing basis. No assurances can be given that the Fund’s operations
for any given year will produce income that satisfies these requirements.

If the Fund failed to satisfy the
qualifying income exception in any year, other than a failure that is determined by the IRS to be inadvertent and that is cured within
a reasonable time after discovery (in which case, as a condition of relief, the Fund could be required to pay the government amounts determined
by the IRS), the Fund would be taxable as a corporation for U.S. federal income tax purposes and would pay U.S. federal income tax on
its income at regular corporate tax rates. In that event, Shareholders would not report their share of the Fund’s income or loss
on their tax returns. Distributions by the Fund (if any) would be treated as dividend income to Shareholders to the extent of the Fund’s
current and accumulated earnings and profits, then treated as a tax-free return of capital to the extent of a Shareholder’s basis
in the Shares (thus reducing the Shareholder´s basis), and thereafter, to the extent such distributions exceed the Shareholder’s
basis in such Shares, as capital gain for Shareholders who hold their Shares as capital assets. Accordingly, if the Fund were to be taxable
as a corporation, it would likely have a material adverse effect on the economic return from an investment in the Fund and on the value
of the Shares.

The remainder of this summary assumes
that the Fund is classified for U.S. federal income tax purposes as a partnership that it is not taxable as a corporation.

U.S. Shareholders

Tax Consequences of Ownership
of Shares

Taxation
of the Fund’s Income No U.S. federal income tax is paid by the Fund on its income. Instead, the Fund files annual
partnership returns, and each U.S. Shareholder is required to report on its U.S. federal income tax return its allocable share of
the income, gain, loss, deductions and credits reflected on such partnership returns. Therefore, a U.S. Shareholder who does not
invest through a tax-exempt account may be subject to tax on its allocable share of the Fund’s capital gain, which can be
significant, even if the U.S. Shareholder has not sold any of the Fund Shares. Generally, in rising markets, increased turnover of
the Fund’s portfolio would result in additional amounts of taxable realized gains being allocated to Shareholders than if the
portfolio turnover was not so increased. Conversely, in falling markets, increased turnover of the Fund’s portfolio may,
depending upon circumstances, result in additional amounts of realized losses being allocated to Shareholders than if the portfolio
turnover were not so increased. If the Fund recognizes income, including interest on cash equivalents and net capital gains,
Shareholders must report their share of these items regardless of whether the Fund makes a distribution of cash or property during
the taxable year. Consequently, a Shareholder may be taxable on income or gain recognized by the Fund but receive no cash
distribution with which to pay the resulting tax liability or may receive a distribution that is insufficient to pay such liability.
Because the Sponsor currently does not commit to make distributions, it is likely that a U.S. Shareholder that realizes net income
or gain with respect to Shares for a taxable year will be required to pay any resulting tax from sources other than Fund
distributions. Additionally, individuals with modified adjusted gross income in excess of $200,000 ($250,000 in the case of married
individuals filing jointly) and certain estates and trusts are subject to an additional 3.8% tax on their “net investment
income,” which generally includes net income from interest, dividends, annuities, royalties, and rents, and net capital gains
(other than certain amounts earned from trades or businesses). Also included as income subject to the additional 3.8% tax is income
from businesses involved in the trading of financial instruments or commodities. Shareholders subject to this provision may be
required to pay this 3.8% tax on interest income and capital gains allocated to them by the Fund.

Monthly
Conventions for Allocations of the Fund’s Profit and Loss and Capital Account Restatements Under Code section 704, the
determination of a partner’s distributive share of any item of income, gain, loss, deduction or credit is governed by the applicable
organizational document unless the allocation provided by such document lacks “substantial economic effect.” An allocation
that lacks substantial economic effect nonetheless will be respected if it is in accordance with the partners’ interests in the
partnership, determined by considering all facts and circumstances relating to the economic arrangements among the partners. Subject to
the possible exception for certain conventions to be used by the Fund as discussed below, it is expected that allocations pursuant to
the Trust Agreement should be considered as having substantial economic effect or being in accordance with Shareholders’ interests
in the Fund.