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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is placed at risk. Individuals and other non-corporate taxpayers are permitted to deduct capital losses only to the extent of their capital gains for the taxable year plus $3,000 of other income. Unused capital losses can be carried forward and used in future years, subject to these same limitations. Corporate taxpayers generally may deduct capital losses only to the extent of capital gains, subject to special carryback and carryforward rules. Expenses classified for U.S. federal income tax purposes as “miscellaneous itemized deductions,” generally including investment-related expenses (other than interest and certain other specified expenses), are not deductible for non-corporate taxpayers. Although the matter is not free from doubt, we believe management fees the Fund pays to the Sponsor and other expenses of the Fund will constitute non-deductible miscellaneous itemized deductions rather than expenses incurred in connection with a trade or business and will report these expenses consistent with that interpretation.

For taxable years beginning on or
before December 31, 2025, the Code imposes additional limitations on the amount of certain itemized deductions allowable to individuals
with adjusted gross income in excess of certain amounts by reducing the otherwise allowable portion of such deductions by an amount equal
to the lesser of:

●	3% of the individual’s adjusted gross income in excess of certain threshold amounts; or

●	80% of the amount of certain itemized deductions otherwise allowable for the taxable year.

For taxable years beginning on or
after January 1, 2026, the Code provides that the amount of the itemized deductions otherwise allowable for the taxable year shall be
reduced by 2/37 of the lesser of (1) such amount of itemized deductions, or (2) so much of the taxable income of the taxpayer for the
taxable year as exceeds the dollar amount at which the 37% rate bracket under Code section 1 begins with respect to the taxpayer. Non-corporate
Shareholders generally may deduct “investment interest expense” only to the extent of their “net investment income.”
Investment interest expense of a Shareholder will generally include any interest expense accrued by the Fund and any interest paid or
accrued on direct borrowings by a Shareholder to purchase or carry its Shares, such as interest with respect to a margin account. Net
investment income generally includes gross income from property held for investment (including “portfolio income” under the
passive loss rules but not, absent an election, long-term capital gains or certain qualifying dividend income) less deductible expenses
other than interest directly connected with the production of investment income.

If the Fund incurs indebtedness that
is treated as allocable to a trade or business, the Fund’s ability to deduct interest on such indebtedness allocable is limited
to an amount equal to the sum of (1) the Fund’s business interest income during the year and (2) 30% of the Fund’s adjusted
taxable income for such taxable year. If the Fund is not entitled to fully deduct its business interest in any taxable year, such excess
business interest expense will be allocated to each Shareholder as excess business interest and can be carried forward by the Shareholder
to successive taxable years to offset any excess taxable income allocated by the Fund to such Shareholder. Any excess business interest
expense allocated to a Shareholder will reduce such Shareholder’s basis in its Shares in the year of the allocation even if the
expense does not give rise to a deduction to the Shareholder in that year. Immediately prior to a Shareholder’s disposition of its
Shares, the Shareholder’s basis will be increased by the amount by which such basis reduction exceeds the excess business interest
expense that has been deducted by such Shareholder.

To the extent that the Fund allocates
losses or expenses to a Shareholder that must be deferred or are disallowed as a result of these or other limitations in the Code, such
Shareholder may be taxed on income in excess of the economic income or distributions (if any) on such Shareholder’s Shares. As one example,
a Shareholder could be allocated and required to pay tax on such Shareholder’s share of interest income accrued by the Fund for a particular
taxable year, and in the same year be allocated a share of a capital loss that such Shareholder cannot deduct currently because such Shareholder
has insufficient capital gains against which to offset the loss. As another example, a Shareholder could be allocated and required to
pay tax on such Shareholder’s share of interest income and capital gain for a year but be unable to deduct some or all of such Shareholder’s
share of management fees and/or margin account interest incurred by such Shareholder with respect to such Shareholder’s Shares. Shareholders
are urged to consult their own tax advisor regarding the effect of limitations under the Code on their ability to deduct their allocable
share of the Fund’s losses and expenses.

Tax Basis of Shares

A Shareholder’s tax basis in
its Shares is important in determining (1) the amount of taxable gain or loss it will realize on the sale or other disposition of its
Shares, (2) the amount of non-taxable distributions that it may receive from the Fund, and (3) its ability to utilize its distributive
share of any losses of the Fund on its U.S. federal income tax return. A Shareholder’s initial tax basis of its Shares will equal
its cost for the Shares plus its share of the Fund’s liabilities (if any) at the time of purchase. In general, a Shareholder’s
“share” of those liabilities will equal the sum of (i) the entire amount of any otherwise nonrecourse liability of the Fund
as to which the Shareholder or certain affiliates of the Shareholder is the creditor (a “partner nonrecourse liability”) and
(ii) a pro rata share of any nonrecourse liabilities of the Fund that are not partner nonrecourse liabilities as to any Shareholder.

A Shareholder’s tax basis in
its Shares generally will be (1) increased by (a) its allocable share of the Fund’s taxable income and gain and (b) any additional
contributions by the Shareholder to the Fund and (2) decreased (but not below zero) by (a) its allocable share of the Fund’s tax
deductions and losses and (b) any distributions by the Fund to the Shareholder. For this purpose, an increase in a Shareholder’s
share of the Fund’s liabilities will be treated as a contribution of cash by the Shareholder to the Fund and a decrease in that
share will be treated as a distribution of cash by the Fund to the Shareholder. Pursuant to certain IRS rulings, a Shareholder will be
required to maintain a single, “unified” basis in all Shares that it owns. As a result, when a Shareholder that acquired its
Shares at different prices sells less than all of its Shares, such Shareholder will not be entitled to specify particular Shares (e.g.,
those with a higher basis) as having been sold. Rather, such Shareholder must determine its gain or loss on the sale by using an “equitable
apportionment” method to allocate a portion of its unified basis in its Shares to the Shares sold.

Treatment of Fund Distributions

If the Fund makes non-liquidating
distributions to Shareholders, such distributions generally will not be taxable to the Shareholders for U.S. federal income tax purposes
except to the extent that the amount of money distributed exceeds the Shareholder’s adjusted basis of its interest in the Fund immediately
before the distribution. Any money distributed that is in excess of a Shareholder’s tax basis generally will be treated as gain
from the sale or exchange of Shares. For purposes of determining the gain recognized on a distribution from a partnership, a marketable
security distributed to a partner is generally treated as money. This treatment, however, does not apply to distributions to “eligible
partners” of an “investment partnership,” as those terms are defined in the Code.

Tax Consequences of Disposition
of Shares

If a Shareholder sells its Shares,
it will recognize gain or loss equal to the difference between the amount realized and its adjusted tax basis for the Shares sold. A Shareholder’s
amount realized will be the sum of the cash or the fair market value of other property received plus its share of the Fund’s liabilities.