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: 2026-03-16
Accession Number: 0001999371-26-005896
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2089855/000199937126005896/active-s1a_031626.htm

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may lessen the incentive for miners to process and confirm transactions on the Bitcoin Network Transactions in bitcoin are processed by miners who are primarily compensated by receiving newly issued bitcoins (Mining Subsidy) as a compensation for successfully solving a cryptographic problem. Mining Subsidies follow an issuance schedule that declines over time. Miners might also be compensated through voluntary fees paid by Bitcoin network participants, which alongside Mining Subsidies constitute total mining rewards. Mining Subsidies are subject to “halvings,” which are events in which the issuance of new bitcoins per mined block is cut in half. These events take place in multiples of 210,000 blocks starting from Bitcoin’s block number (or block height) 0, referred to as the genesis block, which was mined on January 3, 2009. With the time interval between two consecutive blocks being targeted at 10 minutes on average, halving events should happen approximately every four years.

The bitcoin Mining Subsidy
was equal to 50 bitcoins per mined block between heights 0 and 209,999. The first halving took place on November 28, 2012, as of
height 210,000, dropping the Mining Subsidy to 25 bitcoins per block between heights 210,000 and 419,999. The second halving occurred
on July 9, 2016, setting the Mining Subsidy per block to 12.5 bitcoins between heights 420,000 and 629,999. The third halving took
place on May 11, 2020, setting the Mining Subsidy per block to 6.25 bitcoins between heights 630,000 and 839,999. The most recent
halving happened on April 20, 2024, as of height 840,000.

Halvings will continue until
the maximum possible 21 million bitcoins have been mined and released into circulation. Given bitcoin’s average block time
of 10 minutes and the halving occurring every 210,000 blocks, it is estimated that the maximum of 21 million bitcoins will be reached
around the year 2137. Currently, there are approximately 19.92 million bitcoins that have been mined and are in circulation (as
of September 3, 2025).

Once new bitcoin tokens are
no longer awarded for adding a new block, miners will only have transaction fees to incentivize them, and as a result, it is expected
that miners will need to be better compensated with higher transaction fees to ensure that there is adequate incentive for them
to continue mining.

If transaction confirmation
fees become too high, the marketplace may be reluctant to use bitcoin. This may result in decreased usage and limit expansion of
the Bitcoin Network in the retail, commercial and payments space, potentially adversely impacting investment in the Fund. Conversely,
if the Mining Subsidy or the value of the transaction fees is insufficient to motivate miners, they may cease expending processing
power to solve blocks and confirm transactions.

Ultimately, if the awards of
new bitcoin for solving blocks declines and transaction fees for recording transactions are not sufficiently high to incentivize
miners, or if the costs of validating transactions grow disproportionately, miners may operate at a loss, transition to other networks,
or cease operations altogether. Each of these outcomes could, in turn, slow transaction validation and usage, which could have
a negative impact on the Bitcoin Network and could adversely affect the value of the bitcoin held by the Fund.

An acute cessation of mining
operations would reduce the collective processing power on the Bitcoin Network, which would adversely affect the transaction verification
process by temporarily decreasing the speed at which blocks are added to the blockchain and make the blockchain more vulnerable
to a malicious actor obtaining control in excess of 50% of the processing power on the blockchain. Reductions in processing power
could result in material, though temporary, delays in transaction confirmation time. Any reduction in confidence in the transaction
verification process or mining processing power may adversely impact the value of Shares of the Fund or the ability of the Sponsor
to operate. These risks also apply to other crypto assets to the extent such crypto asset use mining.

Bitcoin ownership is concentrated
in a small number of holders, causing vulnerability to bitcoin

A significant portion of bitcoin
is held by a small number of holders who have the ability to affect the price of bitcoin and who are sometimes referred to as “whales.”
Because bitcoin is lightly regulated, bitcoin whales have the ability, alone or in coordination, to manipulate the price of bitcoin
by restricting or expanding the supply of bitcoin. Activities of bitcoin whales that reduce user confidence in bitcoin, the Bitcoin
Network or the fairness of bitcoin trading venues, or that affect the price of bitcoin, could have a negative impact on the value
of an investment in the Fund.

Increased transaction
fees may adversely affect the usage of the crypto asset’s network

Bitcoin miners collect fees
for each transaction they confirm. Miners validate unconfirmed transactions by adding the previously unconfirmed transactions to
new blocks in the blockchain. Miners are not forced to confirm any specific transaction, but they are economically incentivized
to confirm valid transactions as a means of collecting fees. Miners have historically accepted relatively low transaction confirmation
fees, because miners have a very low marginal cost of validating unconfirmed transactions. If miners collude in an anticompetitive
manner to reject low transaction fees, then bitcoin users could be forced to pay higher fees, thus reducing the attractiveness
of the Bitcoin Network. Bitcoin mining occurs globally, and it may be difficult for authorities to apply antitrust regulations
across multiple jurisdictions. Any collusion among miners may adversely impact an investment in the Fund or the ability of the
Fund to operate. These risks also apply to other crypto assets to the extent such crypto asset uses mining. Similarly, increased
transaction costs or efforts on any crypto asset network may adversely impact the price of the crypto asset.

Sales of newly minted
crypto asset could cause its price to decline, which could negatively affect an investment in the Fund

If entities engaged in bitcoin
mining choose not to hold the newly mined bitcoin, and, instead, make it available for sale, there can be downward pressure on
the price of bitcoin. A bitcoin mining operation may be more likely to sell a higher percentage of its newly created bitcoin, and
more rapidly so, if it is operating at a low profit margin, thus reducing the price of bitcoin. Lower bitcoin prices may result
in further tightening of profit margins for miners and decreasing profitability, thereby potentially causing even further selling
pressure. Diminishing profit margins and increasing sales of newly mined bitcoin could result in a reduction in the price of bitcoin,
which could adversely impact an investment in the Shares. Similarly, other newly minted crypto assets may increase the supply of
that crypto asset, creating downward pressure on the price of the crypto asset.

Limited adoption and ability
to use bitcoin to purchase goods contribute to price volatility

Currently, there is relatively
limited use of bitcoin in the retail and commercial markets in comparison to relatively extensive use as a store of value, thus
contributing to price volatility of bitcoin that could adversely affect the Fund’s Shares. Banks and other established financial
institutions may refuse to process funds for bitcoin transactions; process wire transfers to or from bitcoin trading venues, bitcoin-related
companies or service providers; or maintain accounts for persons or entities transacting in bitcoin or providing bitcoin-related
services. Similarly, the limited adoption and ability to use any crypto asset as anything other than a store of value may contribute
to price volatility.

Environmental risks
from mining could adversely affect the price of a crypto asset

Mining bitcoin currently requires
computing hardware that consumes large amounts of electricity. By way of electrical power generation, many miners rely on fossil
fuels to power their operations. Public perception of the impact of mining on climate change may reduce demand for the crypto assets
and increase the likelihood of regulation that limits mining or restricts energy usage by miners, which could result in a significant
reduction in mining activity and adversely affect the security of the Bitcoin network and could adversely affect the price of bitcoin
and the value of the Shares.

The proof-of-work validation
mechanism used to verify transactions on the Bitcoin Network necessitates that bitcoin miners maintain high levels of computing
power, which can require extremely high energy usage. Although measuring the electricity consumed by this process is difficult
because these operations are performed by various machines with varying levels of efficiency, the process consumes a significant
amount of energy. Further, in addition to the direct energy costs of performing these calculations, there are indirect costs that
impact the Bitcoin Network’s total energy consumption, including the costs of cooling the machines that perform these calculations.
A significant decrease in the computational resources dedicated to the Bitcoin Network’s validation protocol could reduce
the security of the network which may erode bitcoin’s viability as a store of value or means of exchange.