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

Chunk 55 of 62
Word Count: 1478
Character Count: 9442

Document Content:

of the Fund are treated as partners in a partnership for U.S. federal income tax purposes. Accordingly, the Fund will furnish Shareholders each year with tax information on IRS Schedule K-1 (Form 1065), which will be used by the Shareholders in completing their U.S. federal income tax returns. The IRS has ruled that assignees of partnership interests who have not been admitted to a partnership as partners but who have the capacity to exercise substantial dominion and control over the assigned partnership interests will be considered partners for U.S. federal income tax purposes. On the basis of this ruling, except as otherwise provided herein, we will treat as a Shareholder any person whose Shares are held on that person’s behalf by a broker or other nominee if that person has the right to direct the nominee in the exercise of all substantive rights attendant to the ownership of the Shares.

Persons who hold an interest
in the Fund as a nominee for another person are required to furnish to us the following information: (1) the name, address and
taxpayer identification number of the beneficial owner and the nominee; (2) whether the beneficial owner is (a) a person that is
not a U.S. person, (b) a foreign government, an international organization or any wholly-owned agency or instrumentality of either
of the foregoing, or (c) a tax-exempt entity; (3) the number and a description of Shares acquired or transferred for the beneficial
owner; and (4) certain information including the dates of acquisitions and transfers, means of acquisitions and transfers, and
acquisition cost for purchases, as well as the amount of net proceeds from sales. Brokers and financial institutions are required
to furnish additional information, including whether they are U.S. persons and certain information on Shares they acquire, hold
or transfer for their own account. A penalty of $250 per failure (as adjusted for inflation), up to a maximum of $3,000,000 per
calendar year (as adjusted for inflation), is imposed by the Code for failure to report such information correctly to the Fund.
If the failure to furnish such information correctly is determined to be willful, the per failure penalty increases to $500 (as
adjusted for inflation) or, if greater, 10% of the aggregate amount of items required to be reported, and the $3,000,000 maximum
does not apply. The nominee is required to supply the beneficial owner of the Shares with the U.S. federal income tax information
furnished by the Fund.

Partnership
Audit Procedures The IRS may audit the U.S. federal income tax returns filed by the Fund. Partnerships are generally
treated as separate entities for purposes of U.S. federal tax audits, judicial review of administrative adjustments by the IRS,
and tax settlement proceedings. The tax treatment of partnership items of income, gain, loss and deduction is determined at the
partnership level in a unified partnership proceeding rather than in separate proceedings with the partners.

Tax deficiencies (including
interest and penalties) that arise from an adjustment to partnership items generally are assessed and collected from the partnership
(rather than from the partners), and generally are calculated using maximum applicable tax rates (although such partnership level
tax may be reduced or eliminated under limited circumstances). A narrow category of partnerships (generally, partnerships having
no more than 100 partners that consist exclusively of individuals, C corporations, S corporations and estates) are permitted to
elect out of the partnership-level audit rules. As an alternative to partnership-level tax liability, a partnership may elect to
furnish adjusted Schedule K-1s to the IRS and to each person who was a partner in the audit year, stating such partner’s
share of any partnership adjustments, and each such partner would then take the adjustments into account on its tax returns in
the year in which it receives its adjusted Schedule K-1 (rather than by amending their tax returns for the audited year). If the
Fund were subject to a partnership level tax, the economic return of all Shareholders (including Shareholders that did not own
Shares in the Fund during the taxable year to which the audit relates) may be affected.

The Trust Agreement provides
that if the Fund becomes subject to any tax as a result of any adjustment to taxable income, gain, loss, deduction or credit for
any taxable year of the Fund (pursuant to a tax audit or otherwise), such Shareholder (and each former Shareholder) is obligated
to indemnify the Fund and the Sponsor against any such taxes (including any interest and penalties) to the extent such tax (or
portion thereof) is properly attributable to such Shareholder (or former Shareholder). In addition, the Sponsor, on behalf of the
Fund, will be authorized to take any action permitted under applicable law to avoid the assessment of any such taxes against the
Fund (including an election to issue adjusted Schedule K-1s to the Shareholders (and/or former Shareholders) that take such adjustments
to taxable income, gain, loss, deduction or credit into account, resulting in each such Shareholder taking those adjustments into
account on its tax returns).

Reportable
Transaction Rules In certain circumstances the Code and Treasury Regulations require that the IRS be notified of transactions
through a disclosure statement attached to a taxpayer’s U.S. federal income tax return. These disclosure rules may apply
to transactions irrespective of whether they are structured to achieve particular tax benefits. They could require disclosure by
the Fund or Shareholders if a Shareholder incurs a loss in excess of a specified threshold from a sale or redemption of its Shares
and possibly in other circumstances. While these rules generally do not require disclosure of a loss recognized on the disposition
of an asset in which the taxpayer has a “qualifying basis” (generally a basis equal to the amount of cash paid by the
taxpayer for such asset), they apply to a loss recognized with respect to interests in a pass-through entity, such as the Shares,
even if the taxpayer’s basis in such interests is equal to the amount of cash it paid. In addition, significant monetary
penalties may be imposed in connection with a failure to comply with these reporting requirements. Investors should consult their
own tax advisor concerning the application of these reporting requirements to their specific situation.

Tax-Exempt
Organizations Subject to numerous exceptions, qualified retirement plans and individual retirement accounts, charitable
organizations and certain other organizations that otherwise are exempt from U.S. federal income tax (collectively, “exempt
organizations”) nonetheless are subject to the tax on unrelated business taxable income (UBTI). Generally, UBTI means the
gross income derived by an exempt organization from a trade or business that it regularly carries on, the conduct of which is not
substantially related to the exercise or performance of its exempt purpose or function, less allowable deductions directly connected
with that trade or business. If the Fund were to regularly carry on (directly or indirectly) a trade or business that is unrelated
with respect to an exempt organization Shareholder, then in computing its UBTI, the Shareholder must include its share of (1) the
Fund’s gross income from the unrelated trade or business, whether or not distributed, and (2) the Fund’s allowable
deductions directly connected with that gross income. An exempt organization that has more than one unrelated trade or business
generally must compute its UBTI separately for each such trade or business. UBTI generally does not include dividends, interest,
or payments with respect to securities loans and gains from the sale of property (other than property held for sale to customers
in the ordinary course of a trade or business). Nonetheless, income on, and gain from the disposition of, “debt-financed
property” is UBTI. Debt-financed property generally is income-producing property (including securities), the use of which
is not substantially related to the exempt organization’s tax-exempt purposes, and with respect to which there is “acquisition
indebtedness” at any time during the taxable year (or, if the property was disposed of during the taxable year, the 12-month
period ending with the disposition). Acquisition indebtedness includes debt incurred to acquire property, 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.