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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U.S. federal income tax consequences that differ from those discussed below. No ruling has been or will be requested from the IRS with respect to any matter affecting the Fund or prospective investors, and the IRS may disagree with the tax positions taken by the Fund. If the IRS were to challenge the Fund’s tax positions in litigation, they might not be sustained by the courts. No statutory, administrative or judicial authority directly addresses the treatment of the Shares or instruments similar to the Shares for U.S. federal income tax purposes. As a result, the Fund cannot assure investors that the IRS or the courts will agree with the tax consequences described herein. A different treatment from that described below could adversely affect the amount, timing and character of income, gain or loss in respect of an investment in the Shares and could adversely affect the value of the Shares.

As used herein, the term “U.S.
Shareholder” means a Shareholder that is, for U.S. federal income tax purposes, (i) a citizen or resident of the United States,
(ii) a corporation created or organized in or under the laws of the United States or any political subdivision thereof, (iii) an
estate the income of which is subject to U.S. federal income taxation regardless of its source or (iv) a trust that (a) is subject
to the supervision of a court within the United States and the control of one or more United States persons as described in section
7701(a)(30) of the Code, or (b) has a valid election in effect under applicable Treasury Regulations to be treated as a United
States person. A “Non-U.S. Shareholder” is a holder that is not a U.S. Shareholder nor a partnership for U.S. federal
income tax purposes. If a partnership or other entity or arrangement treated as a partnership holds our Shares, the tax treatment
of a partner will generally depend upon the status of the partner and the activities of the partnership. If you are a partner of
a partnership holding our Shares, the discussion below may not be applicable to you and you should consult your own tax advisor
regarding the tax consequences of acquiring, owning and disposing of Shares.

EACH PROSPECTIVE INVESTOR IS
ADVISED TO CONSULT ITS OWN TAX ADVISOR REGARDING THE U.S. FEDERAL INCOME TAX CONSEQUENCES OF AN INVESTMENT IN SHARES, AS WELL AS
ANY APPLICABLE STATE, LOCAL OR FOREIGN TAX CONSEQUENCES, IN LIGHT OF ITS PARTICULAR CIRCUMSTANCES.

Tax Classification of the Fund

The Fund is organized and
will be operated as a statutory trust in accordance with the provisions of the Trust Agreement and applicable Delaware law. Notwithstanding
the Fund’s status as a statutory trust, due to the nature of its activities, the Fund will not be classified as a trust for
U.S. federal income tax purposes but rather it is more likely than not it will be classified as a partnership for U.S. federal
income tax purposes. The trading of Shares on the Exchange will cause the Fund to be classified as a “publicly traded partnership”
for U.S. federal income tax purposes. Under section 7704 of the Code, a publicly traded partnership is generally taxable as a corporation.
In the case of an entity not registered under the Investment Company Act (such as the Fund) and not meeting certain other conditions,
however, an exception to this general rule applies if at least 90% of the entity’s gross income is “qualifying income”
for each taxable year of its existence (the “qualifying income exception”). For this purpose, qualifying income is
defined as including, in pertinent part, interest (other than from a financial business), dividends, and gains from the sale or
disposition of capital assets held for the production of interest or dividends.

In the case of a partnership
of which a principal activity is the buying and selling of commodities other than as inventory or of futures, forwards and options
with respect to commodities, “qualifying income” also includes income and gains from commodities and from such futures,
forwards, options, and, provided the partnership is a trader or investor with respect to such assets, swaps and other notional
principal contracts with respect to commodities.

There is very limited authority
on the U.S. federal income tax treatment of the crypto assets. Based on CFTC determinations that treat bitcoin and ether as commodities
under the CEA, the Fund intends to take the position that the crypto assets qualify as commodities for purposes of satisfying the
qualifying income exception under section 7704 of the Code. Further, in absence of guidance to the contrary, the Fund intends to
take the position that income derived from the staking of crypto assets, if any, constitutes qualifying income for purposes of
the qualifying income exception under section 7704 of the Code. Shareholders should be aware that the Fund’s position is
not binding on the IRS, and no assurance can be given that the IRS will not challenge the Fund’s position, or that the IRS
or a court will not ultimately reach a contrary conclusion, which would result in the material adverse consequences to Shareholders
and the Fund discussed below.

The Fund’s taxation as
a partnership rather than a corporation will require the Sponsor to conduct the Fund’s business activities in such a manner
that it satisfies the requirements of the qualifying income exception on a continuing basis. No assurances can be given that the
Fund’s operations for any given year will produce income that satisfies these requirements.

If the Fund failed to satisfy
the qualifying income exception in any year, other than a failure that is determined by the IRS to be inadvertent and that is cured
within a reasonable time after discovery (in which case, as a condition of relief, the Fund could be required to pay the government
amounts determined by the IRS), the Fund would be taxable as a corporation for U.S. federal income tax purposes and would pay U.S.
federal income tax on its income at regular corporate tax rates. In that event, Shareholders would not report their share of the
Fund’s income or loss on their tax returns. Distributions by the Fund (if any) would be treated as dividend income to Shareholders
to the extent of the Fund’s current and accumulated earnings and profits, then treated as a tax-free return of capital to
the extent of a Shareholder’s basis in the Shares (thus reducing the Shareholder´s basis), and thereafter, to the extent
such distributions exceed the Shareholder’s basis in such Shares, as capital gain for Shareholders who hold their Shares
as capital assets. Accordingly, if the Fund were to be taxable as a corporation, it would likely have a material adverse effect
on the economic return from an investment in the Fund and on the value of the Shares.

The remainder of this summary
assumes that the Fund is classified for U.S. federal income tax purposes as a partnership that it is not taxable as a corporation.

U.S. Shareholders

Tax Consequences of Ownership
of Shares