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 difference in crypto assets and weights of those crypto assets of the Fund compared to the Index Constituents. Actively-managed funds are also subject to higher costs than passively-managed funds. The Fund incurs trading costs associated with active and frequent trading of Eligible Assets. These trading costs can result in higher total expenses compared to passively-managed crypto ETPs. These higher costs reduce the Fund’s NAV and may cause the Fund to underperform passively-managed crypto ETPs, particularly in market environments where active management does not add sufficient value to offset the additional costs. Market participants may attempt to “reverse engineer” one or more of the Fund’s trading strategies. If successful, this could result in such market participants engaging in certain predatory trading practices that may have the potential to harm the Fund and its Shareholders. These practices may include front-running (trading ahead of the Fund) or free-riding (mirroring the Fund’s strategies).

As an actively-managed Fund, the Fund
may engage in frequent trading of its portfolio assets in pursuing its investment objective. Generally, the higher the portfolio turnover
rate, the higher the overall transaction costs and the greater the potential impact on the fund’s total return. High portfolio turnover
results in increased transaction costs to the Fund related to the sale of holdings and reinvestment of the proceeds in other holdings.
The Fund’s portfolio turnover rate may vary from year to year due to fluctuations in the levels of shareholder purchase and redemption
activity, shifts in market conditions or evaluations of assets, and/or changes in the overall investment outlook. Increased portfolio
reallocations and frequent portfolio turnover also may increase the possibility of tax consequences in taxable accounts.

Fund assets may be depleted if
investment performance does not exceed Fund fees and expenses

Over time, the Fund’s assets
could be depleted if investment performance does not exceed the Management Fee and Fund expenses, see “Business of the Fund –
Fees and Expenses.” For example, creation with cash may cause the Fund to incur certain costs including brokerage commissions and
redemptions of Creation Units with cash may result in the recognition of taxable gains or losses that the Fund. 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
circumstances. Unless such expenses are specifically attributable the Fund or arise out of the Fund’s operations, any such expenses
will be allocated by the Sponsor using a pro rata methodology that allocates certain Fund expenses to the Fund. Expenses paid by Sponsor
are not subject to any caps or limits.

Investors may not be able to
buy or sell Shares of the Fund through their current brokerages

Because of volatility and other risks
associated with crypto-related investments, brokerage firms may limit or not permit trading in such investments. Because of current or
future brokerage policies regarding crypto-linked securities, investors could have difficulty selling Shares through their brokerage and
potentially face restrictions when or how they could trade their Shares.

The Fund may have credit risk,
operational risk, and fraud risk buying or selling crypto assets

The Fund may transact with crypto
trading platforms and over-the-counter crypto market makers. The Fund may take on credit risk when it trades crypto assets, and its contractual
rights with respect to such transactions may be limited. It is possible that, through computer or human error, or through theft or criminal
action, the Fund’s assets could be transferred in incorrect amounts or to unauthorized third parties. To the extent that the Fund
is unable to seek a corrective transaction with such third party or is incapable of identifying the third party which has received the
Fund’s crypto assets (through error or theft), the Fund will be unable to recover incorrectly transferred assets, and such losses
will negatively impact the Fund. In the event the Fund is unable to recover any incorrectly transferred assets, the Fund will not be liable
to the Shareholders for any such losses.

If a custodial agreement or an
Authorized Participant agreement is terminated or a Custodian or an Authorized Participant becomes insolvent or fails to provide services
as required, the Sponsor may need to find and appoint a replacement custodian or Authorized Participant, which could pose a challenge
to the safekeeping of the Fund’s assets, the Fund’s ability to create and redeem shares and the Fund’s ability to continue
to operate may be adversely affected

The Fund is dependent on the Crypto
Custodian to operate. The Crypto Custodian performs essential functions in terms of safekeeping the Fund’s crypto assets in the
custodial wallets. If a Crypto Custodian fails to perform the functions it performs for the Fund, the Fund may be unable to operate or
create or redeem Creation Units, which could force the Fund to liquidate or adversely affect the price of the Shares.

If any Crypto Custodian were to be
required or choose, as a result of a regulatory action (including, for example, the litigation initiated by the SEC), to restrict or curtail
the services it offers, it could negatively affect the Fund’s ability to operate or process creations or redemptions of Creation
Units, which could force the Fund to liquidate or adversely affect the price of the Shares.

Any prioritization by the Crypto Custodian
away from the Fund could result in inadequate attention, delays, or comparatively unfavorable commercial terms for the Fund. Such actions
could harm the Fund’s operations, reduce the efficiency of its trading activities, and negatively affect the value of the Shares.

Transferring maintenance responsibilities
of the Fund’s account at the Crypto Custodian to one or more other custodians will likely be complex and could subject the Fund’s
assets to the risk of loss during the transfer, which could have a negative impact on the performance of the Shares or result in loss
of the Fund’s assets. Also, the Sponsor may not be able to find a party willing to serve as the custodian of the Fund’s assets
or on the same terms as its agreements with the Crypto Custodian or at all. To the extent that the Sponsor is not able to find a suitable
party willing to serve as the custodian, the Sponsor may be required to terminate the Fund and liquidate the Fund’s crypto assets.
In addition, to the extent that the Sponsor finds a suitable party but must enter into a modified custodial agreement that is less favorable
for the Fund, the value of the Shares could be adversely affected.

Moreover, the legal rights of customers
with respect to crypto assets held on their behalf by a third-party custodian, such as the Crypto Custodian, in insolvency proceedings
are currently uncertain. Also, if a Crypto Custodian becomes insolvent, suffers business failure, ceases business operations, defaults
on or fails to perform their obligations under their contractual agreements with the Fund, or abruptly discontinues the services they
provide to the Fund for any reason, the Fund’s operations including its creation and redemption processes would be adversely affected.

Part of the Fund’s assets are
held in cash and cash equivalents with the Cash Custodian and other financial institutions, if applicable. The insolvency of the Cash
Custodian and any financial institution in which the Fund holds cash and cash equivalents could result in a substantial loss of the Fund’s
cash and cash equivalents.

Similarly, if an Authorized Participant
suffers insolvency, business failure or interruption, default, failure to perform, security breach or if an Authorized Participant chooses
not to participate in the creation and redemption process of the Fund, and the Fund is unable to engage replacement Authorized Participants
on commercially acceptable terms or at all, then the creation and redemption process of the Fund, the arbitrage mechanism used to keep
the Shares in line with the NAV and the Fund’s operations generally could be negatively affected.

Authorized Participants may prioritize
their resources and trading focus away from the Fund, particularly during periods of market stress or heightened volatility, potentially
reducing the liquidity and market efficiency of the Fund’s Shares. This withdrawal could adversely impact the liquidity of the Shares,
potentially leading to increased volatility, wider bid-ask spreads, and a deviation of the Share price from its NAV, especially if the
Fund fails to attract enough Authorized Participants willing to maintain a market in the Shares. Such impacts could cause the Sponsor
to halt or suspend the creation or redemption of Shares during such times, among other consequences.

The service providers may not
act in the best interest of the Fund and have limited liability