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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its affiliates would be at risk of potential criminal or civil lawsuits or liability. The Fund takes measures with the objective of reducing illicit financing risks in connection with the Fund’s activities. However, illicit financing risks are present in the crypto asset markets. There can be no assurance that the measures employed by the Fund will prove successful in reducing illicit financing risks, and the Fund is subject to the complex illicit financing risks and vulnerabilities present in the crypto asset markets. If such risks arise, the Fund or the Sponsor or its affiliates could face civil or criminal liability, fines, penalties, or other punishments, be subject to investigation, have their assets frozen, lose access to banking services or services provided by other service providers, or suffer disruptions to their operations, any of which could negatively affect the Fund’s ability to operate or cause losses in value of the Shares.

The Fund, the Sponsor
and its affiliates have adopted and implemented policies and procedures that are designed to comply with applicable anti-money
laundering laws and sanctions laws and regulations, including applicable know your customer (KYC) laws and regulations. The Sponsor
and its affiliates and the Fund will only interact with known third-party service providers with respect to whom the Sponsor or its
affiliates have engaged in a due diligence process to ensure a thorough KYC process, such as the Authorized Participants, Crypto
Trading Counterparty, and Crypto Custodian. Each service provider must undergo onboarding prior to placing creation or redemption
orders with respect to the Fund. As a result, the Sponsor and the Fund have instituted procedures designed to ensure that a
situation would not arise where the Fund would engage in transactions with a counterparty whose identity the Sponsor and the Fund
did not know.

Furthermore, Authorized Participants,
as broker-dealers, and the Crypto Custodian, as an entity licensed to conduct virtual currency business activity by [the OCC], respectively,
are “financial institutions” subject to the U.S. Bank Secrecy Act, as amended (BSA), and U.S. economic sanctions laws. The
Fund will only accept creation and redemption requests from Authorized Participants, LPs, and market makers who have represented to the
Fund that they have implemented compliance programs that are designed to ensure compliance with applicable sanctions and anti-money laundering
laws. The Custodians have adopted and implemented anti-money laundering and sanctions compliance programs, which provides additional protections
to ensure that the Sponsor and the Fund do not transact with a sanctioned party.

However, there is no guarantee that
such procedures will always prove to be effective or that the Fund’s service providers will always perform their obligations. If
the Authorized Participants, LPs, or market makers have inadequate policies, procedures and controls for complying with applicable anti-money
laundering and applicable sanctions laws or the Fund’s procedures or diligence prove to be ineffective, violations of such laws
could result, which could result in regulatory liability for the Fund, the Sponsor, or its affiliates under such laws, including governmental
fines, penalties, and other punishments, as well as potential liability to or cessation of services by the Fund’s service providers.
Any of the foregoing could result in losses to the shareholders or negatively affect the Fund’s ability to operate.

The market for crypto-based ETFs
may reach saturation

The market for crypto-based ETFs like
the Fund may reach a point where there is little or no additional investor demand. If this happens, there can be no assurance that the
Fund will grow to or maintain a viable size. Due to the Fund’s small asset base, certain of the Fund’s expenses and its portfolio
transaction costs may be higher than those of a Fund with a larger asset base. To the extent that the Fund does not grow to or maintain
a viable size, it may be liquidated, and the expenses, timing and tax consequences of such liquidation may not be favorable to some Shareholders.

Risks Related to Shareholder Voting
Rights and Liability

Shareholders have only very limited
voting rights and generally will not have the power to replace the Sponsor. Shareholders will not participate in the management of the
Fund and do not control the Sponsor so they will not have influence over basic matters that affect the Fund

Shareholders will have very limited
voting rights with respect to the Fund’s affairs. Shareholders may elect a replacement sponsor only if the current Sponsor resigns
voluntarily or loses its corporate charter. Shareholders will not be permitted to participate in the management or control of the Fund
or the conduct of its business. Shareholders must therefore rely upon the duties and judgment of the Sponsor to manage the Fund’s
affairs.

Shareholders will not have the rights
enjoyed by investors in certain other types of entities

As interests in a Delaware statutory
trust, the Shares do not involve the rights normally associated with the ownership of shares of a corporation (including, for example,
the right to bring Shareholder oppression and derivative actions). In addition, the Shares have limited voting and distribution rights
(for example, Shareholders do not have the right to elect directors, as the Fund does not have a board of directors, and generally will
not receive regular distributions of the net income and capital gains earned by the Fund). The Fund is also not subject to certain investor
protection provisions of the Sarbanes Oxley Act of 2002 and Exchange governance rules (for example, independent audit committee requirements).

CALCULATING NAV

The net asset value (NAV) of the Fund
will be equal to the total assets of the Fund, including but not limited to, all crypto assets, stablecoins, cash, and cash equivalents
less total liabilities of the Fund. The NAV per share is calculated by dividing NAV of the Fund by the number of shares currently outstanding.
The methodology used to calculate the price of the crypto assets in determining the NAV of the Fund may not be deemed consistent with
U.S. GAAP (GAAP).

The Sponsor has the
authority to determine the Fund’s NAV. Subject to the oversight of the Sponsor, the Sponsor has delegated to the Administrator
the responsibility to calculate the NAV of the Fund as well as the daily valuation process, based on pricing sources selected by the
Sponsor. The Fund’s investment team may provide pricing inputs. No investment team may provide pricing instructions.

In determining the Fund’s NAV,
the Administrator values each crypto asset and stablecoin held by the Fund based on a reference rate determined by the Sponsor (Reference
Rate). The Administrator will engage a third-party vendor(s) to obtain a Reference Rate for each Eligible Asset. Each Reference Rate aggregates
the trade flow of the respective crypto asset on spot exchange platforms, during an observation window between 3:00 p.m. and 4:00 p.m.
E.T. into the U.S. dollar price of the respective crypto asset, at 4:00 p.m. E.T.

The Reference Rates are calculated
based on the transactions that take place on a crypto asset trading platform approved by the Reference Rate provider (Relevant Transactions).
The methodology (or calculation steps) for each Reference Rate is as follows:

•	All Relevant Transactions are added to a joint list, recording the trade price and size for each transaction.

•	The joint list is partitioned into a number of equally-sized time intervals.

•	For each partition separately, the volume-weighted median trade price is calculated from the trade prices
and sizes of all Relevant Transactions, i.e. across all relevant trading platforms. A volume-weighted median differs from a standard median
in that a weighting factor, in this case trade size, is factored into the calculation.

•	Each Reference Rate is then given by the equally weighted average of the volume-weighted medians of all
partitions.

The Administrator believes that the
use of the Reference Rates is reflective of a reasonable valuation of the spot price of the Fund’s crypto assets and that it satisfies
the priority of the methodology, which is resistance to manipulation. For example, under this methodology, crypto asset transactions conducted
at outlying prices do not have an undue effect, large trades or clusters of trades transacted over a short period of time will not have
an undue influence, and the effect of large trades at prices that deviate from the prevailing price are mitigated from having an undue
influence. The Administrator requires the Reference Rate provider(s) to have a control framework that is consistent with relevant regulations
and designed to ensure the integrity of its Reference Rates.

If one or more Reference Rates are
not available or the Administrator determines that one or more Reference Rates are unreliable (referred to herein as a “Fair Value
Event”), the Fund’s holdings may be fair valued by the Administrator. Additionally, the Administrator will monitor for unusual
prices and escalate to the Sponsor if detected. Notification of a material change to the Reference Rate will be made via a prospectus
supplement, in its periodic Exchange Act reports, and/or on the Fund’s website.