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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Word Count: 1462
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Clients allow users to interact with the Litecoin Network to send value and miners to generate proof-of-work and append new blocks to the Litecoin Blockchain. Litecoin Network upgrades are managed through Litecoin Improvement Proposals (LIPs), with updates focusing on enhancing privacy, scalability, and security. In particular, Litecoin has served as a testing ground for innovations that have later been adopted or considered by Bitcoin, like SegWit and the Lightning Network, emphasizing its role in the broader crypto asset ecosystem as both a currency and a platform for technological experimentation. LTC is used in peer-to-peer transactions to pay for goods and services, stored for future use, or converted to government-backed currency such as the U.S. dollar. It has a maximum supply cap of 84 million coins, with every LTC fractionable to the eighth decimal place, and its smallest fraction equal to 0.00000001 LTC and called a “Litoshi” (analogously to Bitcoin Satoshis).

To make sure that the creation of blocks
and thus the issuance of new LTC occur on average every 2.5 minutes, the Litecoin system also possesses a built-in difficulty adjustment
that tunes the cost of generating a valid proof-of-work every interval of 2,016 blocks — approximately every 3.5 days (against Bitcoin’s
approximate 14 days difficulty periods) — starting from its genesis block, which was mined on October 7, 2011. Newly-issued LTC
is the primary incentive for miners to keep appending blocks to the Blockchain. In addition, users of the Network can pay miners with
additional LTC to prioritize their transactions, with fees typically lower in comparison to the ones on Bitcoin due to Litecoin’s
design for faster and cheaper transactions.

The value of LTC depends on its supply
(which is limited to 84 million), and demand for LTC in the markets for exchange that have been organized to facilitate the trading of
the asset. The supply of LTC follows a predefined issuance schedule. After every 840,000 mined blocks, the issuance of LTC per block is
reduced in half. Litecoin’s mining subsidy started at 50 LTC per mined block and remained constant until the first halving in August
2015 (at 840,000 blocks), dropping the mining subsidy to 25 LTC. The second halving occurred in August 2019 (at 1,680,000 blocks) setting
the subsidy per block to 12.5 LTC. The third halving occurred in August 2023 (at 2,520,000 blocks), setting the subsidy per block
to 6.25 LTC until height 3,359,999. In October 2025, the circulating supply of LTC was approximately 76 million coins.

LTC is considered
a direct competitor to bitcoin as a crypto asset for digital payments given its goal of improving upon bitcoin by offering faster
transaction confirmation times and a different proof-of-work algorithm to potentially have a more decentralized set of miners.
Nonetheless, while LTC also possesses a very strict monetary policy, its market perception as an emerging digital store of value is
not as relevant or consolidated as is the case of BTC. Therefore, the value of LTC is determined, in part, by the supply of and
demand for LTC in the global crypto market, market expectations for the adoption of Litecoin as novel payment network, the number of
merchants that accept LTC as a form of payment, the volume of peer-to-peer transactions involving the asset, among other
factors.

DOT (Polkadot Network)

Polkadot is an online, decentralized,
distributed computing platform that operates on a peer-to- peer basis. The Polkadot system is comprised of the Polkadot Network, Relay
Chain, which is a decentralized protocol that secures, connects, and coordinates every chain, independent Parachains, and Bridges. The
native crypto asset of the Polkadot system is DOT.

Polkadot is designed to be a base layer
platform that will enable future developers the ability to build a wide variety of decentralized applications, as well as to seamlessly
connect with existing non-Polkadot blockchains such as Bitcoin or Ethereum. Decentralized applications are applications that are designed
to run without a middleman between the developer and the user. Polkadot’s main feature is a sharded blockchain protocol. Conventional
“homogenous” sharding is a way to distribute the burden of computation involved in processing the blocks of a blockchain.
When sharded, portions of the distributed ledger are broken down further and distributed to additional computers for faster processing
of a single chain. Heterogeneous sharding, on the other hand, is unique to Polkadot. Heterogeneous sharding allows an entire network of
blockchains to distribute the workload as shards but to operate together in a single ecosystem. This gives developers scale, while still
preserving a high degree of flexibility to customize features. This flexibility allows for blockchains built on the Polkadot protocol
to optimize for their own use cases.

To accomplish heterogeneous sharding,
Polkadot employs three types of blockchains that combine into one entity. The first type of Polkadot blockchains are multiple, purpose-built
chains that run in parallel, named Parachains. Parachains are where the future independent blockchains for decentralized applications
will be built and operate. These “sovereign” chains can be created by developers using an already existing toolkit named Substrate
(developed by Polkadot’s corporate entity, Parity). Substrate’s turnkey nature reduces project development time substantially,
making the Polkadot Network more attractive and therefore more valuable. Parachains can have their own native tokens and governance outside
of DOT, but Parachains rely on the Polkadot system and DOT token for security and operability.

The second Polkadot blockchain is the
Relay Chain acting as a base layer that connects all the Parachains together. The Relay Chain validates the state transition of all the
connected Parachains. It is also what allows the Parachains to stay heterogeneous. By offloading the consensus work and block building
to the Relay Chain, individual Parachains sacrifice less functionality and gain scale from parallel transactions that can be done on the
latent capacity around the chain. Also, importantly, the Relay Chain facilitates cross communication between Parachains. Akin to the ARPAnet
for the early internet, Polkadot harmonizes blockchain communications to allow data to move independently, facilitating the creation of
large numbers of currently unworkable decentralized applications. The Polkadot system uses the Relay Chain as a heterogeneous, multi-chain
to ensure the secure transfer and authenticity of each DOT and hosts the public transaction ledger. The Relay Chain is a decentralized
digital file, or ledger, that contains all the records of DOT and is stored in multiple copies globally on the computers of users of the
Polkadot Network. The Relay Chain is public and accessible to all, and includes a record of every DOT, every transaction in DOT in order
and every public address on the Polkadot Network. Every computer on the Polkadot Network is a “node,” and collectively all
of the nodes ensure that each new transaction in DOT adheres to certain rules before it is added to the Relay Chain.

Transaction data is permanently recorded
on the Relay Chain in data files called “blocks,” which reflect transactions that have been recorded and authenticated by
Polkadot Network participants. Each newly recorded block of transactions refers back to and “connects” with the immediately
preceding recorded block in the ledger. Each new block records outstanding DOT transactions, and outstanding transactions are settled
and validated through such recording. Although there are size limits to each block, the Relay Chain is designed to represent a complete,
transparent, secure and unbroken history of all the transactions that have occurred on the Polkadot Network. The Polkadot Network and
associated software programs can view the Relay Chain to determine the exact balance, if any, of DOT associated with any public address
listed on the Relay Chain.

The third Polkadot blockchains, are
Bridges, which allow Parachains to interact with external blockchains like Ethereum or Bitcoin Blockchain, although with some limitations.
Due to the nature of decentralized technology, there will not be one blockchain to run all applications, yet there should not be a constellation
of blockchains, all in the same universe but galaxies apart. The interoperability of Polkadot is therefore a notable feature.

The Polkadot Network launched with
its proof of concept software release in May 2018, and Polkadot’s first live and operational blockchain candidate was launched in
May 2020. This was the first step in a multi-stage deployment per the project’s planned roadmap. This first version of Polkadot
used a Proof of Authority consensus mechanism managed by six validators in the Web3 Foundation. In June 2020, the Web3 Foundation started
the initial validator election process to transition the network to a Nominated PoS consensus mechanism. This started the process of allowing
DOT token holders from the fundraise the ability to stake DOT with newly elected validators. In July 2020, the Web3 Foundation used its
“superuser” key to upgrade the network and unlock full governance authority. Shortly thereafter, the newly formed governance
council removed the Web3 Foundation’s “superuser” privileges, allowing for the network to become permissionless. Then,
in August 2020, DOT token transfers were unlocked.