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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Administrator and affiliate of the Sponsor, serves as the Distributor, under the Underwriting Agreement. The Distributor is registered as a broker-dealer under the 1934 Act and is a member of the Financial Industry Regulatory Authority, Inc. (FINRA). The Distributor is located at 1307 Point Street, Baltimore, Maryland 21231. The Distributor acts as the agent of the Fund, in connection with the sale of Fund Shares in the various states in which the Distributor is qualified as a broker-dealer. Under the Underwriting Agreement, the Distributor accepts orders for Fund Shares at NAV from Authorized Participants. No sales charges are paid by investors or the Fund, and no compensation is paid to the Distributor. The Underwriting Agreement also allows the Distributor to enter into agreements with affiliated entities within the T. Rowe Price Group to offer and sell Shares of the Fund, under limited conditions, to certain investors outside the United States.

Pursuant to the terms of the Underwriting
Agreement, the Distributor is responsible for working with the Sponsor, Administrator, and Transfer Agent to review and approve, or reject,
purchase and redemption orders of Baskets placed by Authorized Participants. The Distributor has agreed to use its best efforts to obtain
orders for Creation units of Shares from Authorized Participants but is under no obligation to purchase or sell any specific amount of
Shares. The Distributor also is responsible for reviewing, approving, and, where necessary, filing the marketing materials prepared by
the Trust, or its other service providers, for compliance with applicable SEC and FINRA laws, rules, and regulations, including any advertising
laws, rules, and regulations. In accordance with the terms of the Underwriting Agreement: (i) the Distributor is liable and holds the
Fund harmless for any losses that the Fund may sustain as the result of any wrongful act the Distributor or its employees, officers, representatives,
or agents, or any untrue statement or alleged untrue statement of material fact contained in the Registration Statement that was provided
to the Fund by the Distributor; and (ii) the Distributor or the Fund may terminate the agreement upon sixty (60) days’ written notice
to one another.

U.S. FEDERAL INCOME TAX CONSEQUENCES

The following
discussion summarizes the material U.S. federal income tax consequences of the purchase, ownership and disposition of Shares of the
Fund and the U.S. federal income tax treatment of the Fund. Except where noted otherwise, it deals only with the U.S. federal income
tax consequences relating to Shares held as capital assets by U.S. Shareholders (as defined below) who are not subject to special
tax treatment. For example, in general it does not address the tax consequences to, such as, but not limited to, dealers in
securities or currencies or commodities, traders in securities or dealers or traders in commodities that elect to use a mark to
market method of accounting, financial institutions, regulated investment companies (except as discussed below), tax-exempt entities
(except as discussed below), insurance companies, persons holding Shares as a part of a position in a “straddle” or as
part of a “hedging,” “conversion” or other integrated transaction for U.S. federal income tax purposes,
persons with “applicable financial statements” within the meaning of section 451(b) of the Internal Revenue Code of
1986, as amended (the “Code”), or holders of Shares whose “functional currency” is not the U.S. dollar.
Furthermore, the discussion below is based on the provisions of the Code, and regulations (Treasury Regulations), rulings and
judicial decisions thereunder as of the date of this prospectus, and such authorities may be repealed, revoked or modified (possibly
with retroactive effect) so as to result in U.S. federal income tax consequences different from those discussed below. Further, the U.S. federal income tax treatment of certain Eligible Asset transactions continues to evolve, and legislation or future administrative
guidance could result in 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 intends to 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 of 1940
as amended (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 Commodity Exchange Act, 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 Eligible 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.