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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debt incurred before the acquisition of property if the debt would not have been incurred but for the acquisition, and debt incurred subsequent to the acquisition of property if the debt would not have been incurred but for the acquisition and at the time of acquisition the incurrence of debt was foreseeable. The portion of the income from debt-financed property attributable to acquisition indebtedness is equal to the ratio of the average outstanding principal amount of acquisition indebtedness over the average adjusted basis of the property for the year. The Fund currently does not anticipate that it will borrow money to acquire investments; however, the Fund cannot be certain that it will not borrow for such purpose in the future, which could result in an exempt organization Shareholder having UBTI. In addition, an exempt organization Shareholder that incurs acquisition indebtedness to purchase its Shares in the Fund may have UBTI.

Under existing IRS guidance,
staking rewards, hard forks, airdrops and similar occurrences with respect to crypto assets are generally treated as taxable events
giving rise to ordinary income. In the absence of guidance to the contrary, it is possible that any such income recognized by an
exempt organization Shareholder could constitute UBTI. An exempt organization Shareholder should consult its own tax advisor regarding
whether such Shareholder may recognize UBTI as a consequence of an investment in the Fund.

The U.S. federal income tax
rate applicable to an exempt organization Shareholder on its UBTI generally will be either the corporate or trust tax rate, depending
upon the Shareholder’s form of organization. The Fund may report to each such Shareholder information as to the portion,
if any, of the Shareholder’s income and gains from the Fund for any year that will be treated as UBTI; the calculation of
that amount is complex, and there can be no assurance that the Fund’s calculation of UBTI will be accepted by the IRS. An
exempt organization Shareholder will be required to make payments of estimated U.S. federal income tax with respect to its UBTI.

Regulated
Investment Companies Interests in and income from “qualified publicly traded partnerships” satisfying certain
gross income tests are treated as qualifying assets and income, respectively, for purposes of determining eligibility for regulated
investment company (RIC) status. A RIC may invest up to 25% of its assets in interests in qualified publicly traded partnerships.
The determination of whether a publicly traded partnership such as the Fund is a qualified publicly traded partnership is made
on an annual basis. While the tax treatment of the crypto assets is not entirely clear, it is possible that the Fund may be a qualified
publicly traded partnership. However, such qualification is not assured, and prospective RIC investors should consult a tax advisor
regarding the treatment of an investment in the Fund under current tax rules and in light of their particular circumstances.

Non-U.S. Shareholders

Generally, non-U.S. persons
who derive U.S. source income or gain from investing or engaging in a U.S. business are taxable on two categories of income. The
first category consists of amounts that are fixed or determinable, annual or periodic income, such as interest, dividends and rent
that are not connected with the operation of a U.S. trade or business (FDAP). The second category is income that is effectively
connected with the conduct of a U.S. trade or business (ECI). FDAP income is generally subject to a 30% withholding tax, which
may be reduced for certain categories of income by a treaty between the U.S. and the recipient’s country of residence. In
contrast, ECI is generally subject to U.S. tax on a net basis at graduated rates upon the filing of a U.S. tax return. Where a
non-U.S. person has ECI as a result of an investment in a partnership, the ECI is currently subject to a withholding tax at a rate
of 37% for individual Shareholders and a rate of 21% for corporate Shareholders. The tax withholding on ECI, which is the highest
tax rate under Code section 1 for non-corporate Non-U.S. Shareholders and Code section 11(b) for corporate Non-U.S. Shareholders,
may increase in future tax years if tax rates increase from their current levels.

Withholding on Allocations
and Distributions

The Code provides that a non-U.S.
person who is a partner in a partnership that is engaged in a U.S. trade or business during a taxable year will also be considered
to be engaged in a U.S. trade or business during that year. Classifying an activity by a partnership as an investment or an operating
business is a factual determination. Under certain safe harbors in the Code, an investment trust whose activities consist of trading
in stocks, securities, or commodities for its own account generally will not be considered to be engaged in a U.S. trade or business
unless it is a dealer in such stocks, securities, or commodities. This safe harbor applies to investments in commodities only if
the commodities are of a kind customarily dealt in on an organized commodity exchange and if the transaction is of a kind customarily
consummated at such place. As noted above, there is limited authority on the U.S. federal income tax treatment of the crypto assets.
Moreover, currently there is no guidance regarding whether and when engaging in staking might constitute a U.S. trade or business.
Accordingly, there can be no assurance that the Fund will not be considered to be engaged in a U.S. trade or business.

In the event that the Fund’s
activities were considered to constitute a U.S. trade or business, the Fund would be required to withhold at the highest rate specified
in Code section 1 (currently 37%) on allocations of its income to non-corporate Non-U.S. Shareholders and the highest rate specified
in Code section 11(b) (currently 21%) on allocations of its income to corporate Non-U.S. Shareholders, when such income is distributed.
Non-U.S. Shareholders would also be subject to a 10% withholding tax on the consideration payable upon a sale or exchange of such
Non-U.S. Shareholder’s Shares unless an exception to withholding applies. In the case of a transfer made through a broker,
the obligation to withhold will generally be imposed on the transferor’s broker. A Non-U.S. Shareholder with ECI will generally
be required to file a U.S. federal income tax return, and the return will provide the Non-U.S. Shareholder with the mechanism to
seek a refund of any withholding in excess of such Shareholder’s actual U.S. federal income tax liability. Any amount withheld
by the Fund will be treated as a distribution to the Non-U.S. Shareholder to the extent possible. In some cases, the Fund may not
be able to match the economic cost of satisfying its withholding obligations to a particular Non-U.S. Shareholder, which may result
in said cost being borne by the Fund, generally, and accordingly, by all Shareholders.

If the Fund is not treated
as engaged in a U.S. trade or business, a Non-U.S. Shareholder may nevertheless be treated as having FDAP income, which would be
subject to a 30% withholding tax (possibly subject to reduction by treaty), with respect to some or all of its distributions from
the Fund or its allocable share of Fund U.S. source income. Amounts withheld on behalf of a Non-U.S. Shareholder will be treated
as being distributed to such Shareholder. If the Fund is not able to match the economic cost of satisfying its withholding obligation
to a particular Non-U.S. Shareholder, said cost may have to be borne by the Fund and accordingly by all Shareholders.

Gain from Sale of Shares

Gain from the sale or exchange
of Shares may be taxable to a Non-U.S. Shareholder if the Non-U.S. Shareholder is a nonresident alien individual who is present
in the U.S. for 183 days or more during the taxable year. In such case, the nonresident alien individual may be subject to a 30%
withholding tax on the amount of such individual’s gain. As discussed above, Non-U.S. Shareholders would also be subject
to a 10% withholding tax on the consideration payable upon a sale or exchange of such Non-U.S. Shareholder’s Shares unless an exception
to withholding applies.

Branch Profits Tax on
Corporate Non-U.S. Shareholders

In addition to the taxes noted
above, any Non-U.S. Shareholders that are corporations may also be subject to an additional tax, the branch profits tax, at a rate
of 30%. The branch profits tax is imposed on a non-U.S. corporation’s dividend equivalent amount, which generally consists
of the corporation’s after-tax earnings and profits that are effectively connected with the corporation’s U.S. trade
or business but are not reinvested in a U.S. business. This tax may be reduced or eliminated by an income tax treaty between the
United States and the country in which the Non-U.S. Shareholder is a “qualified resident.”

Foreign Account Tax Compliance
Act