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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the Fund intends to take the position that income derived from the staking of crypto assets, if any, constitutes qualifying income for purposes of the qualifying income exception under section 7704 of the Code. Shareholders should be aware that the Fund’s position is not binding on the IRS, and no assurance can be given that the IRS will not challenge the Fund’s position, or that the IRS or a court will not ultimately reach a contrary conclusion, which would result in the material adverse consequences to Shareholders and the Fund discussed below. The Fund’s taxation as a partnership rather than a corporation will require the Sponsor to conduct the Fund’s business activities in such a manner that it satisfies the requirements of the qualifying income exception on a continuing basis. No assurances can be given that the Fund’s operations for any given year will produce income that satisfies these requirements.

If the Fund failed to satisfy the
qualifying income exception in any year, other than a failure that is determined by the IRS to be inadvertent and that is cured within
a reasonable time after discovery (in which case, as a condition of relief, the Fund could be required to pay the government amounts determined
by the IRS), the Fund would be taxable as a corporation for U.S. federal income tax purposes and would pay U.S. federal income tax on
its income at regular corporate tax rates. In that event, Shareholders would not report their share of the Fund’s income or loss
on their tax returns. Distributions by the Fund (if any) would be treated as dividend income to Shareholders to the extent of the Fund’s
current and accumulated earnings and profits, then treated as a tax-free return of capital to the extent of a Shareholder’s basis
in the Shares (thus reducing the Shareholder´s basis), and thereafter, to the extent such distributions exceed the Shareholder’s
basis in such Shares, as capital gain for Shareholders who hold their Shares as capital assets. Accordingly, if the Fund were to be taxable
as a corporation, it would likely have a material adverse effect on the economic return from an investment in the Fund and on the value
of the Shares.

The remainder of this summary assumes
that the Fund is classified for U.S. federal income tax purposes as a partnership that it is not taxable as a corporation.

U.S. Shareholders

Tax Consequences of Ownership
of Shares

Taxation
of the Fund’s Income No U.S. federal income tax is paid by the Fund on its income. Instead, the Fund files annual
partnership returns, and each U.S. Shareholder is required to report on its U.S. federal income tax return its allocable share of
the income, gain, loss, deductions and credits reflected on such partnership returns. Therefore, a U.S. Shareholder who does not
invest through a tax-exempt account may be subject to tax on its allocable share of the Fund’s capital gain, which can be
significant, even if the U.S. Shareholder has not sold any of the Fund Shares. Generally, in rising markets, increased turnover of
the Fund’s portfolio would result in additional amounts of taxable realized gains being allocated to Shareholders than if the
portfolio turnover was not so increased. Conversely, in falling markets, increased turnover of the Fund’s portfolio may,
depending upon circumstances, result in additional amounts of realized losses being allocated to Shareholders than if the portfolio
turnover were not so increased. If the Fund recognizes income, including interest on cash equivalents and net capital gains,
Shareholders must report their share of these items regardless of whether the Fund makes a distribution of cash or property during
the taxable year. Consequently, a Shareholder may be taxable on income or gain recognized by the Fund but receive no cash
distribution with which to pay the resulting tax liability or may receive a distribution that is insufficient to pay such liability.
Because the Sponsor currently does not commit to make distributions, it is likely that a U.S. Shareholder that realizes net income
or gain with respect to Shares for a taxable year will be required to pay any resulting tax from sources other than Fund
distributions. Additionally, individuals with modified adjusted gross income in excess of $200,000 ($250,000 in the case of married
individuals filing jointly) and certain estates and trusts are subject to an additional 3.8% tax on their “net investment
income,” which generally includes net income from interest, dividends, annuities, royalties, and rents, and net capital gains
(other than certain amounts earned from trades or businesses). Also included as income subject to the additional 3.8% tax is income
from businesses involved in the trading of financial instruments or commodities. Shareholders subject to this provision may be
required to pay this 3.8% tax on interest income and capital gains allocated to them by the Fund.

Monthly
Conventions for Allocations of the Fund’s Profit and Loss and Capital Account Restatements Under Code section 704, the
determination of a partner’s distributive share of any item of income, gain, loss, deduction or credit is governed by the applicable
organizational document unless the allocation provided by such document lacks “substantial economic effect.” An allocation
that lacks substantial economic effect nonetheless will be respected if it is in accordance with the partners’ interests in the
partnership, determined by considering all facts and circumstances relating to the economic arrangements among the partners. Subject to
the possible exception for certain conventions to be used by the Fund as discussed below, it is expected that allocations pursuant to
the Trust Agreement should be considered as having substantial economic effect or being in accordance with Shareholders’ interests
in the Fund.

In situations where a partner’s
interest in a partnership is redeemed or sold during a taxable year, the Code generally requires that partnership tax items for the year
be allocated to the partner using either an interim closing of the books or a daily proration method. The Fund intends to allocate tax
items using an interim closing of the book’s method under which income, gains, losses and deductions will be determined on a monthly
basis, taking into account the Fund’s accrued income and deductions and gains and losses (both realized and unrealized) for the
month. The tax items for each month during a taxable year will then be allocated among the holders of Shares in proportion to the number
of Shares owned by them as of the close of trading on the last trading day of the preceding month (the “monthly allocation convention”).

Under the monthly allocation convention,
an investor who disposes of a Share during the current month will be treated as disposing of the Share as of the end of the last day of
the calendar month. For example, an investor who buys a Share on April 10 of a year and sells it on May 20 of the same year will be allocated
all of the tax items attributable to May (because it is deemed to hold the Share through the last day of May) but none of those attributable
to April. The tax items attributable to that Share for April will be allocated to the person who held the Share as of the close of trading
on the last trading day of March. Under the monthly allocation convention, an investor who purchases and sells a Share during the same
month, and therefore does not hold (and is not deemed to hold) the Share at the close of the last trading day of either that month or
the previous month, will receive no allocations with respect to that Share for any period. Accordingly, investors may receive no allocations
with respect to Shares that they actually held or may receive allocations with respect to Shares attributable to periods that they did
not actually hold the Shares.

By investing in Shares, a U.S. Shareholder
agrees that, in the absence of new legislation, regulatory or administrative guidance, or judicial rulings to the contrary, it will file
its U.S. income tax returns in a manner that is consistent with the monthly allocation convention as described above and with the IRS
Schedule K-1 or any successor form provided to Shareholders by the Fund.