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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the continued participation of Authorized Participants, market makers, and other key secondary-market participants. Only Authorized Participants may engage in direct creation or redemption transactions with the Fund, and the Fund has a limited number of such institutions. If one or more Authorized Participants or major market makers withdraw, become unable to process orders, or cease activities, the Fund may experience trading halts, increased bid/ask spreads, or Shares trading at a discount to NAV, potentially leading to limited liquidity or even delisting. Additionally, there may be instances where an Authorized Participant is unable to proceed with or complete a redemption order, particularly during periods of market disruption, exchange suspensions, or emergencies. In such cases, declining asset values may result in reduced cash distributions or a loss to Authorized Participants, which can further decrease secondary market liquidity. During these periods, fewer buyers may be available and overall trading in Shares may decline.

Furthermore, the Fund may specify a
minimum number of Shares or Baskets that must remain outstanding. If redemptions reduce the number of outstanding Shares to this minimum,
additional redemptions cannot occur until new Baskets are created. This restriction may make market makers less willing to purchase Shares,
potentially limiting the ability to sell Shares in the secondary market. The minimum levels for Shares are subject to change and will
be posted daily on the Fund’s website. The Sponsor cannot guarantee ongoing participation by Authorized Participants, market makers,
or the maintenance of adequate liquidity in the secondary market.

The postponement, suspension or
rejection of purchase or redemption orders could adversely affect a Shareholder redeeming their Shares in the Fund

The postponement, suspension or rejection
of creation or redemption orders may adversely affect an investment in the Shares of the Fund. To the extent orders are suspended or rejected,
the arbitrage mechanism resulting from the process through which Authorized Participants create and redeem Shares directly with the Fund
may fail to closely link the price of the Shares to the value of the Eligible Assets. If this is the case, the liquidity of the Shares
may decline, and the price of the Shares may fluctuate and may fall.

There are no limitations on the Sponsor’s
discretion to postpone, suspend or reject purchase or redemption orders under the Securities Act or SEC listing orders permitting the
listing and trading of the Fund’s Shares on the Exchange. In addition, Shareholders of the Fund will not have the protections provided
in this regard that are applicable to Funds regulated under the Investment Company Act of 1940.

Loss of a critical banking relationship
for, or the failure of a bank used by, the Fund could adversely impact the Fund’s ability to create or redeem Baskets or could cause
losses to the Fund

To the extent that the Fund faces difficulty
establishing or maintaining banking relationships, the loss of the Fund’s banking partners, the imposition of operational restrictions
by these banking partners and the inability for the Fund to utilize other financial institutions may result in a disruption of creation
and redemption activity of the Fund or cause other operational disruptions or adverse effects for the Fund. In the future, it is possible
that the Fund could be unable to establish accounts at new banking partners or establish new banking relationships, or that the banks
with which the Fund is able to establish relationships may not be as large or well-capitalized or subject to the same degree of prudential
supervision as the existing providers.

The Fund may be exposed to losses if
a bank where it holds assets experiences financial distress or fails. Recent examples include the 2023 closures of Silvergate Bank, Silicon
Valley Bank, Signature Bank, and First Republic Bank. If a bank failure occurs and the Fund’s cash balances are not further insured,
these losses could directly impact the Fund.

The lack of active trading markets
for the Shares of the Fund may result in loss in Share value

Although the Shares of the Fund will
be listed and traded on the Exchange, there can be no guarantee that an active trading market for the Shares of the Fund will be maintained.
If a Shareholder needs to sell Shares at a time when no active market for the Shares exists, the market price for the Shares will likely
be lower, if the Shares are sold, than if an active market did exist.

Regulatory Risks

Crypto asset markets in the U.S.
exist in a state of regulatory uncertainty, and adverse legislative or regulatory developments could significantly harm the value of the
Eligible Assets or the Shares

As a result of the growth in the size
of the crypto asset market, the U.S. Congress and a number of U.S. federal and state agencies (including FinCEN, SEC, OCC, CFTC, FINRA,
the Consumer Financial Protection Bureau, the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation,
the IRS, state financial institution regulators, and others) have been examining the operations of crypto asset networks, crypto asset
users and the crypto asset markets. Many of these state and federal agencies have brought enforcement actions or issued consumer advisories
regarding the risks posed by crypto assets to investors. Ongoing and future regulatory actions with respect to crypto assets generally
or each of the Eligible Assets in particular may alter, perhaps to a materially adverse extent, the nature of an investment in the Shares
or the ability of the Fund to continue to operate. Regulatory developments such as by banning, restricting or imposing onerous conditions
or prohibitions on the use of crypto assets, mining activity, digital wallets, the provision of services related to trading and custody
of crypto assets, the operation of the Eligible Assets Networks, or the crypto asset markets generally may adversely impact the value
of the Eligible Assets and, therefore, of the Fund.

The bankruptcy filings of FTX and its
subsidiaries, Three Arrows Capital, Celsius Network, Voyager Digital, Genesis, BlockFi and others, and other developments in the crypto
asset markets, have resulted in calls for heightened scrutiny and regulation of the crypto asset industry, with a specific focus on intermediaries
such as crypto platforms and custodians. Federal and state legislatures and regulatory agencies may introduce and enact new laws and regulations
to regulate crypto asset intermediaries, such as crypto platforms and custodians. The March 2023 collapses of Silicon Valley Bank, Silvergate
Bank, and Signature Bank, which in some cases provided services to the crypto assets industry, may amplify and/or accelerate these trends.
In January 2023, the federal banking agencies issued a joint statement on crypto-asset risks to banking organizations following events
which exposed vulnerabilities in the crypto-asset sector, including the risk of fraud and scams, legal uncertainties, significant volatility,
and contagion risk. Although banking organizations are not prohibited from crypto asset related activities, the agencies have expressed
significant safety and soundness concerns with business models that are concentrated in crypto asset related activities or have concentrated
exposures to the crypto asset sector.

U.S. federal and state regulators,
as well as the White House, have issued reports and releases concerning crypto assets and crypto asset markets. Further, in 2023 the House
of Representatives formed two new subcommittees: the Digital Assets, Financial Technology and Inclusion Subcommittee and the Commodity
Markets, Digital Assets, and Rural Development Subcommittee, each of which were formed in part to analyze issues concerning crypto assets
and demonstrate a legislative intent to develop and consider the adoption of federal legislation designed to address the perceived need
for regulation of and concerns surrounding the crypto industry. In 2023, Congress continued to consider several stand-alone crypto asset
bills, including a formal process to determine when crypto assets will be treated as either securities to be regulated by the SEC or commodities
under the purview of the CFTC, what type of federal/state regulatory regime will exist for payment stablecoins and the how the BSA will
apply to cryptocurrency providers. On May 21, 2024, the Financial Innovation and Technology for the 21st Century Act (FIT21) advanced
through the United States House of Representatives in a vote along bipartisan lines. However, the extent and content of any forthcoming
laws and regulations are not yet ascertainable with certainty, and it may not be ascertainable in the near future.