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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amount of the new crypto asset for free, based on the fact that they hold such other crypto asset. With respect to any Incidental Right, IR Virtual Currency, fork, airdrop, or similar event, the Sponsor shall, in its sole discretion, decide what action the Fund shall take. Such actions that the Fund may take include to irrevocably abandon, claim, or sell such crypto asset, Incidental Right, or IR Virtual Currency, so long as such action is consistent with the Fund’s policies and custodial policies, does not adversely affect the status of the Fund as a partnership for U.S. federal income tax purposes, or is not otherwise prohibited by law. In the event of a fork or airdrop, the Sponsor will determine which network it believes is the appropriate network for the new crypto asset, and whether the new crypto asset qualifies as an Eligible Asset for the Fund’s purposes. Staking

The Fund, Sponsor, Custodian, or any
other service provider engaged by the Fund, whether associated with the Fund or otherwise, may directly or indirectly, engage in any action
that would result in any portion of the Fund’s crypto assets becoming subject to proof-of-stake (PoS) or other validation processes
on the Eligible Assets’ underlying networks, if there is adequate regulatory clarity regarding such staking or other forms of validation,
and their consequences. If there is adequate regulatory clarity, and the legality and/or tax-related consequences of such actions are
not in doubt, the Fund’s crypto assets may be used to engage in staking, liquid staking, or other processes that earn additional
crypto assets, generate income, or accrue any form of earnings, in accordance with appropriate risk, tax and regulatory guidance.

Fund
Fees and Expenses

The Fund expects to pay the Sponsor
a Management Fee, monthly in arrears, in an amount equal to [0.XX]% per annum of the daily NAV of the Fund (the “Management Fee”).

The Management Fee is paid in consideration
of the Sponsor’s services related to the management of the Fund’s business and affairs. The Administrator will calculate the
Management Fee on a daily basis with respect to the NAV of the Fund, and the Management Fee will be paid directly by the Fund to the Sponsor.
The Management Fee will accrue daily and be payable monthly in cash.

The Sponsor pays all routine operational,
administrative, and other ordinary expenses of the Fund, including but not limited to, fees and expenses of the Administrator, Trustee,
Custodians, Transfer Agent, licensors, accounting and audit fees and expenses, tax preparation expenses, ongoing SEC registration fees,
report preparation and mailing expenses, and ordinary legal fees and expenses.

In addition to the Fund’s Management
Fee, the Fund pays all of its (1) brokerage commissions, including but not limited to applicable exchange fees and give-up fees, fees
and commissions related to any crypto transaction fees for on-chain transfers of assets, and other transaction related fees and expenses
charged in connection with trading activities. The Fund also pays all of its (2) borrowing and financing costs and expenses. The Fund
pays all of its (3) taxes or governmental fees payable by or in respect to the Fund to federal, state, or other governmental agencies,
domestic or foreign, including stamp or other transfer taxes. The Fund also pays all of its (4) non-recurring, extraordinary, or unusual
fees and expenses, if any. Non-recurring, extraordinary, or unusual fees and expenses are unexpected or unusual in nature, such as legal
claims and liabilities and litigation costs or indemnification or other unanticipated expenses. The Fund may be required to indemnify
the Sponsor, and the Fund and/or the Sponsor may be required to indemnify the Fund’s service providers under certain unusual or
extraordinary circumstances. Non-recurring, unusual, or extraordinary expenses of the Fund will be determined by the Sponsor or Administrator.
The Sponsor may determine in its sole discretion to assume any non-recurring, unusual, or extraordinary expenses of the Fund, if applicable.

The Sponsor and/or the
Administrator will bear the costs and expenses related to the Fund’s organization and initial offer and sale of Shares,
including registration fees paid or to be paid to the SEC, Financial Industry Regulatory Authority (FINRA) or any other regulatory
body or self-regulatory organization. None of the costs and expenses related to the Fund’s organization and initial offer and
sale of Shares are chargeable to the Fund. Further, neither the Sponsor nor the Administrator may recover any of these costs and
expenses from the Fund. [Total fees to be paid by the Fund are currently estimated to be approximately [0.XX]% of the daily net
assets of the Fund for the twelve-month period after issuance, though this amount may change in future years.]

In the event the Fund’s cash
balance is insufficient to pay all fees and expenses, including the Management Fee, the Fund may need to sell its crypto assets from time
to time to pay for its fees and expenses. The net asset value is reduced by the accrual of Management Fee or any Fund expenses not assumed
by the Sponsor. Each sale of crypto assets by the Fund generally will be a taxable event for the Fund. See “U.S. Federal Income
Tax Consequences” section.

OVERVIEW OF THE ELIGIBLE ASSETS’ INDUSTRY

Each Eligible Asset operates on its
respective network (Eligible Asset Networks). The Eligible Asset Networks are decentralized peer-to-peer computer systems that rely on
public key cryptography for security, and their values are primarily influenced by market supply and demand.

In this section, the Sponsor provides
descriptions of the Eligible Assets. Bitcoin and ether are discussed in more detail in this section because, as of the date of this prospectus,
they represent a significant portion of the Fund’s holdings. The Sponsor may update this section periodically; however, there is
no obligation to amend the Fund’s prospectus in the event of changes to the Eligible Assets or weights Eligible Assets.

Bitcoin (BTC)

The Bitcoin System as a whole is involved
in maintaining the ledger of bitcoin ownership and facilitating the transfer of bitcoin among parties, as well as its components, such
as the Bitcoin Network, the Bitcoin Blockchain, the Bitcoin Protocol and Bitcoin Clients (together, the “Bitcoin System”).
The crypto asset native to the Bitcoin System is bitcoin whose ownership registry and full transfer history is made by the Bitcoin System.

Bitcoin is a crypto asset that serves
as the unit of account on an open-source, permissionless, decentralized, peer-to-peer computer network (known as the Bitcoin Network).
Every bitcoin is fractionable to the eighth decimal place, with its smallest fraction equal to 0.00000001 bitcoin and called a “Satoshi.”
It may be used to pay for goods and services, stored for future use, or converted to government-backed currency such as the U.S. dollar.
As of the date of this prospectus, the adoption of bitcoin for these purposes has been limited. The value of bitcoin is not backed by
any government, corporation, or other identified body.

Bitcoin
Blockchain and Consensus Mechanism

Transactions in bitcoin are broadcasted
over the Bitcoin Network and registered in bundles called blocks, which are set to occur on average every 10 minutes and collectively
track the full transaction history and ownership of bitcoins in circulation. Every block is cryptographically tied to its predecessor,
creating a chain of blocks called the “Bitcoin Blockchain.” Blocks are identified by a block height as if they were progressively
piled up starting from a height of zero. The first block of the Bitcoin Blockchain is known as the Genesis block, assigned a height of
0 (zero), and was created on January 3, 2009.

Whilst in traditional financial ledgers,
a central authority is responsible for updating users’ balances and preventing the same balance to be spent twice, the Bitcoin System
introduces a cost for network participants to add new blocks of transactions to the Bitcoin Blockchain. This consists of creating a proof-of-work
by solving a highly costly cryptographic problem by trial and error and broadcasting the obtained solution to other network participants
for verification. A key feature of proof-of-work is its asymmetry: the proof generator needs to expend large amounts of computational
power to generate it, whereas others can easily verify that the proof is valid at a negligible cost.