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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as a medium of exchange or store of value. Central banks and other governmental entities have also announced cooperative initiatives and consortia with private sector entities, with the goal of leveraging blockchain and other technology to reduce friction in cross-border and interbank payments and settlement, and commercial banks and other financial institutions have also recently announced a number of initiatives of their own to incorporate new technologies, including blockchain and similar technologies, into their payments and settlement activities, which could compete with, or reduce the demand for, the Eligible Assets. As a result of any of the foregoing factors, the value of the Eligible Assets could decrease, which could adversely affect an investment in the Fund. The potential limitations around insurance and Shareholders’ limited rights of legal recourse against the Fund, Trustee, Sponsor, Administrator, Cash Custodian and Crypto Custodian expose the Fund and its Shareholders to the risk of loss

[The Fund’s crypto assets are
not covered by any specific insurance maintained by the Fund or its Sponsor. Although the Crypto Custodian may maintain commercial crime
insurance policies, which provide coverage for risks such as employee fraud and theft, these limits may not be sufficient to cover the
full loss and may have limitations depending on the type of storage being used (cold vs hot). Additionally, the Crypto Custodian may not
maintain any or sufficient limits to cover losses related to damage to key materials and/or network/security breaches. Any insurance policies
the Crypto Custodian does maintain are shared among all of the Crypto Custodian’s clients and are not specific to the Fund or to
any particular assets held by the Fund. Consequently, the availability of insurance proceeds to the Fund may be reduced if multiple claims
are made by other customers. Further, the Crypto Custodian may choose not to renew, or may be unable to renew any portion or all of these
insurance policies, which may further expose the Fund and its Shareholders to the risk of loss.

As noted above, the insurance coverage
provided by the Crypto Custodian may not be sufficient to cover all potential losses. The total coverage amount may be significantly lower
than the value of the crypto assets under custody, exposing the Fund to the risk that, in the event of a loss, the insurance policy will
not cover the full extent of the Fund’s assets. Furthermore, the types of risks covered by the Crypto Custodian’s insurance
may not include all risks faced by the Fund, and losses could arise from other sources for which there is no insurance coverage.

Lastly, even though the Crypto Custodian
maintains capital reserve requirements depending on the assets under custody, there is no assurance that these reserves will be sufficient
to cover potential losses or that insurance proceeds will be available in a timely manner in the event of a claim. Therefore, the Fund
and its Shareholders remain exposed to risks of loss that may not be fully mitigated by insurance or other financial safeguards.]

One or more of the Eligible Assets
held by the Fund may be considered a “memecoin” and may be subject to even greater levels of volatility and regulatory scrutiny
than other crypto assets

Memecoins are crypto
assets inspired by internet memes or trends. Many memecoins have no stated use case or intrinsic value, other than, in some cases,
as a digital collector’s item. While most memecoins have relatively low trading prices and trading volume, occasionally a
memecoin will develop a community of supporters that cause the memecoin to go “viral” on social networks and other
media. These memecoins will often experience unpredictable and extreme price fluctuations over very short windows of time. Memecoins
have also been used in “rug pulls,” where the developers of the memecoin abandon a project after raising assets, leaving
purchasers of the memecoin with nearly worthless assets. Memecoins are also commonly the subject of other forms of market
manipulation, such as pump and dump, wash trading or spoofing schemes. Dogecoin is often considered an example of a memecoin.
Dogecoin gained rapid interest and adoption in online communities, and rapidly became one of the larger digital assets when measured
by market capitalization. Users soon began using Dogecoin for certain financial transactions, including tipping, trading, and
donations. Since then, other memecoins have been launched. While most of such launches receive relatively little attention, some
memecoins experience rapid rises in interest. Any investment in memecoins is subject to a heightened risk of price and trading
volume volatility.

Certain high-profile political figures,
celebrities and organizations have publicly aligned themselves to some memecoins, exposing such memecoins to reputational, regulatory,
and market risks that other crypto assets may not encounter. Periods of extreme price appreciation and decline have sometimes frequently
followed social-media posts, press statements, or public appearances in which prominent public figures appear to endorse, or are rumored
to endorse, various memecoins. Any negative publicity concerning such public figures or similar endorsers could materially diminish public
interest in a memecoin, depress trading volume, and impair the market price of the memecoin, which, in turn, would adversely affect the
value of the Fund’s Shares. Conversely, favorable publicity or perceived political momentum may trigger speculative demand that
inflates the price of a memecoin and heightens volatility, thereby increasing the likelihood of sharp and sudden corrections.

Risks Related to Bitcoin and the
Bitcoin Network

Subsidies for mining bitcoin are
designed to decline over time, which may lessen the incentive for miners to process and confirm transactions on the Bitcoin Network

Transactions in bitcoin are processed
by miners who are primarily compensated by receiving newly issued bitcoins (Mining Subsidy) as a compensation for successfully solving
a cryptographic problem. Mining Subsidies follow an issuance schedule that declines over time. Miners might also be compensated through
voluntary fees paid by Bitcoin network participants, which alongside Mining Subsidies constitute total mining rewards.

Mining Subsidies are subject to “halvings,”
which are events in which the issuance of new bitcoins per mined block is cut in half. These events take place in multiples of 210,000
blocks starting from Bitcoin’s block number (or block height) 0, referred to as the genesis block, which was mined on January 3,
2009. With the time interval between two consecutive blocks being targeted at 10 minutes on average, halving events should happen approximately
every four years.

The bitcoin Mining Subsidy was equal
to 50 bitcoins per mined block between heights 0 and 209,999. The first halving took place on November 28, 2012, as of height 210,000,
dropping the Mining Subsidy to 25 bitcoins per block between heights 210,000 and 419,999. The second halving occurred on July 9, 2016,
setting the Mining Subsidy per block to 12.5 bitcoins between heights 420,000 and 629,999. The third halving took place on May 11, 2020,
setting the Mining Subsidy per block to 6.25 bitcoins between heights 630,000 and 839,999. The most recent halving happened on April 20,
2024, as of height 840,000.

Halvings will continue until the maximum
possible 21 million bitcoins have been mined and released into circulation. Given bitcoin’s average block time of 10 minutes and
the halving occurring every 210,000 blocks, it is estimated that the maximum of 21 million bitcoins will be reached around the year 2137.
Currently, there are approximately 19.92 million bitcoins that have been mined and are in circulation (as of September 3, 2025).

Once new bitcoin tokens are no longer
awarded for adding a new block, miners will only have transaction fees to incentivize them, and as a result, it is expected that miners
will need to be better compensated with higher transaction fees to ensure that there is adequate incentive for them to continue mining.

If transaction confirmation fees become
too high, the marketplace may be reluctant to use bitcoin. This may result in decreased usage and limit expansion of the Bitcoin Network
in the retail, commercial and payments space, potentially adversely impacting investment in the Fund. Conversely, if the Mining Subsidy
or the value of the transaction fees is insufficient to motivate miners, they may cease expending processing power to solve blocks and
confirm transactions.

Ultimately, if the
awards of new bitcoin for solving blocks declines and transaction fees for recording transactions are not sufficiently high to
incentivize miners, or if the costs of validating transactions grow disproportionately, miners may operate at a loss, transition to
other networks, or cease operations altogether. Each of these outcomes could, in turn, slow transaction validation and usage, which
could have a negative impact on the Bitcoin Network and could adversely affect the value of the bitcoin held by the Fund.