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: 2026-05-15
Accession Number: 0001999371-26-010860
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2089855/000199937126010860/tknz-s1a_051526.htm

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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. For example, in September 2025, there were approximately 19.92 million bitcoins that were mined and in circulation.

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.

An acute cessation of mining operations
would reduce the collective processing power on the Bitcoin Network, which would adversely affect the transaction verification process
by temporarily decreasing the speed at which blocks are added to the blockchain and make the blockchain more vulnerable to a malicious
actor obtaining control in excess of 50% of the processing power on the blockchain. Reductions in processing power could result in material,
though temporary, delays in transaction confirmation time. Any reduction in confidence in the transaction verification process or mining
processing power may adversely impact the value of Shares of the Fund or the ability of the Sponsor to operate. These risks also apply
to other crypto assets to the extent such crypto asset use mining.

Bitcoin ownership is concentrated
in a small number of holders, causing vulnerability to bitcoin

A significant portion of bitcoin is
held by a small number of holders who have the ability to affect the price of bitcoin and who are sometimes referred to as “whales.”
Because bitcoin is lightly regulated, bitcoin whales have the ability, alone or in coordination, to manipulate the price of bitcoin by
restricting or expanding the supply of bitcoin. Activities of bitcoin whales that reduce user confidence in bitcoin, the Bitcoin Network
or the fairness of bitcoin trading venues, or that affect the price of bitcoin, could have a negative impact on the value of an investment
in the Fund.

Increased transaction fees may
adversely affect the usage of the crypto asset’s network

Bitcoin miners collect fees for each
transaction they confirm. Miners validate unconfirmed transactions by adding the previously unconfirmed transactions to new blocks in
the blockchain. Miners are not forced to confirm any specific transaction, but they are economically incentivized to confirm valid transactions
as a means of collecting fees. Miners have historically accepted relatively low transaction confirmation fees, because miners have a very
low marginal cost of validating unconfirmed transactions. If miners collude in an anticompetitive manner to reject low transaction fees,
then bitcoin users could be forced to pay higher fees, thus reducing the attractiveness of the Bitcoin Network. Bitcoin mining occurs
globally, and it may be difficult for authorities to apply antitrust regulations across multiple jurisdictions. Any collusion among miners
may adversely impact an investment in the Fund or the ability of the Fund to operate. These risks also apply to other crypto assets to
the extent such crypto asset uses mining. Similarly, increased transaction costs or efforts on any crypto asset network may adversely
impact the price of the crypto asset.

Sales of newly minted crypto
asset could cause its price to decline, which could negatively affect an investment in the Fund

If entities engaged in bitcoin mining
choose not to hold the newly mined bitcoin, and, instead, make it available for sale, there can be downward pressure on the price of bitcoin.
A bitcoin mining operation may be more likely to sell a higher percentage of its newly created bitcoin, and more rapidly so, if it is
operating at a low profit margin, thus reducing the price of bitcoin. Lower bitcoin prices may result in further tightening of profit
margins for miners and decreasing profitability, thereby potentially causing even further selling pressure. Diminishing profit margins
and increasing sales of newly mined bitcoin could result in a reduction in the price of bitcoin, which could adversely impact an investment
in the Shares. Similarly, other newly minted crypto assets may increase the supply of that crypto asset, creating downward pressure on
the price of the crypto asset.

Limited adoption and ability
to use bitcoin to purchase goods contribute to price volatility

Currently, there is relatively limited
use of bitcoin in the retail and commercial markets in comparison to relatively extensive use as a store of value, thus contributing to
price volatility of bitcoin that could adversely affect the Fund’s Shares. Banks and other established financial institutions may
refuse to process funds for bitcoin transactions; process wire transfers to or from bitcoin trading venues, bitcoin-related companies
or service providers; or maintain accounts for persons or entities transacting in bitcoin or providing bitcoin-related services. Similarly,
the limited adoption and ability to use any crypto asset as anything other than a store of value may contribute to price volatility.

Environmental risks from mining
could adversely affect the price of a crypto asset

Mining bitcoin currently requires
computing hardware that consumes large amounts of electricity. By way of electrical power generation, many miners rely on fossil fuels
to power their operations. Public perception of the impact of mining on climate change may reduce demand for the crypto assets and increase
the likelihood of regulation that limits mining or restricts energy usage by miners, which could result in a significant reduction in
mining activity and adversely affect the security of the Bitcoin network and could adversely affect the price of bitcoin and the value
of the Shares.

The proof-of-work validation mechanism
used to verify transactions on the Bitcoin Network necessitates that bitcoin miners maintain high levels of computing power, which can
require extremely high energy usage. Although measuring the electricity consumed by this process is difficult because these operations
are performed by various machines with varying levels of efficiency, the process consumes a significant amount of energy. Further, in
addition to the direct energy costs of performing these calculations, there are indirect costs that impact the Bitcoin Network’s
total energy consumption, including the costs of cooling the machines that perform these calculations. A significant decrease in the computational
resources dedicated to the Bitcoin Network’s validation protocol could reduce the security of the network which may erode bitcoin’s
viability as a store of value or means of exchange.