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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tax purposes. The conventions used by the Fund, as noted above, in making tax allocations may cause a Shareholder to be allocated more or less income or loss for U.S. federal income tax purposes than its proportionate share of the economic income or loss realized by the Fund during the period such Shareholder held the Shares. This mismatch between taxable and economic income or loss in some cases may be temporary, reversing itself in a later year when the Shares are sold, but could be permanent. As one example, a Shareholder could be allocated income accruing after it sold its Shares, resulting in an increase in the basis of the Shares (see “Tax Basis of Shares,” below). In connection with the disposition of the Shares, the additional basis might produce a capital loss the deduction of which may be limited (see “Limitations on Deductibility of Losses and Certain Expenses,” below).

Section
754 election The Fund intends to make the election permitted by section 754 of the Code, which election is irrevocable
without the consent of the IRS. The effect of this election is that when a secondary market sale of Shares occurs, the Fund adjusts
the purchaser’s proportionate share of the tax basis of the Fund’s assets to fair market value, as reflected in the
price paid for the Shares, as if the purchaser had directly acquired an interest in the Fund’s assets. The section 754 election
is intended to eliminate disparities between a partner’s basis in its partnership interest and its share of the tax basis
of the partnership’s assets, so that the partner’s allocable share of taxable gain or loss on a disposition of an asset
will correspond to its share of the appreciation or depreciation in the value of the asset since such partner acquired its interest.
Depending on the price paid for Shares and the tax basis of the Fund’s assets at the time of the purchase, the effect of
the section 754 election on a purchaser of Shares may be favorable or unfavorable. In order to make the appropriate basis adjustments
in a cost-effective manner, the Fund will use certain simplifying conventions and assumptions. In particular, the Fund will obtain
information regarding secondary market transactions in its Shares and use this information to adjust the Shareholders’ indirect
basis in the Fund’s assets. It is possible the IRS could successfully assert that the conventions and assumptions applied
are improper and require different basis adjustments to be made, which could adversely affect some Shareholders.

Limitations
on Deductibility of Losses and Certain Expenses A number of different provisions of the Code may defer or disallow the
deduction of losses or expenses allocated to Shareholders by the Fund, including but not limited to those described below.

A Shareholder’s deduction
of its allocable share of any loss of the Fund is limited to the lesser of (1) the tax basis in such Shareholder´s Shares
or (2) in the case of a Shareholder that is an individual or a closely held corporation, the amount which the Shareholder is considered
to have “at risk” with respect to the Fund’s activities. In general, the amount at risk initially will be a Shareholder’s
invested capital. Losses in excess of the amount at risk must be deferred until years in which the Fund generates additional taxable
income against which to offset such carryover losses or until additional capital 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