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: 2026-04-27
Accession Number: 0001999371-26-009120
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2089855/000199937126009120/activecrypto-s1a_042726.htm

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exceeds the Shareholder’s adjusted basis of its interest in the Fund immediately before the distribution. Any money distributed that is in excess of a Shareholder’s tax basis generally will be treated as gain from the sale or exchange of Shares. For purposes of determining the gain recognized on a distribution from a partnership, a marketable security distributed to a partner is generally treated as money. This treatment, however, does not apply to distributions to “eligible partners” of an “investment partnership,” as those terms are defined in the Code. Tax Consequences of Disposition of Shares If a Shareholder sells its Shares, it will recognize gain or loss equal to the difference between the amount realized and its adjusted tax basis for the Shares sold. A Shareholder’s amount realized will be the sum of the cash or the fair market value of other property received plus its share of the Fund’s liabilities.

Gain or loss recognized by a Shareholder
on the sale or exchange of Shares held for more than one year will generally be taxable as long-term capital gain or loss; otherwise,
such gain or loss will generally be taxable as short-term capital gain or loss. A special election is available under the Treasury Regulations
that allows Shareholders to identify and use the actual holding periods for the Shares sold for purposes of determining whether the gain
or loss recognized on a sale of Shares will give rise to long-term or short-term capital gain or loss. It is expected that most Shareholders
will be eligible to elect, and generally will elect, to identify and use the actual holding period for Shares sold. If a Shareholder who
has differing holding periods for its Shares fails to make the election or is not able to identify the holding periods of the Shares sold,
the Shareholder will have a split holding period in the Shares sold. Under such circumstances, a Shareholder will be required to determine
its holding period in the Shares sold by first determining the portion of its entire interest in the Fund that would give rise to long-term
capital gain or loss if its entire interest were sold and the portion that would give rise to short-term capital gain or loss if the entire
interest were sold. The Shareholder would then treat each Share sold as giving rise to long-term capital gain or loss and short-term capital
gain or loss in the same proportions as if it had sold its entire interest in the Fund.

Under Section 751 of the Code, a portion
of a Shareholder’s gain or loss from the sale of Shares (regardless of the holding period for such Shares), will be separately computed
and taxed as ordinary income or loss to the extent attributable to “unrealized receivables” or “inventory” owned
by the Fund. The term “unrealized receivables” includes, among other things, market discount bonds and short-term debt instruments
to the extent such items would give rise to ordinary income if sold by the Fund. Such amounts of ordinary income allocated to a Shareholder
may be less than, equal to or more than the amount of such gain or loss that otherwise would have recognized by such Shareholder on such
sale of Shares.

If some or all of a Shareholder’s
Shares are lent by its broker or other agent to a third party — for example, for use by the third party in covering a short sale
— the Shareholder may be considered as having made a taxable disposition of the loaned Shares, in which case:

●	the Shareholder may recognize taxable gain or loss to the same extent as if it had sold the Shares for
cash;

●	any of the income, gain, loss, deduction or credit allocable to those Shares during the period of the
loan is not reportable by the Shareholder for U.S. federal income tax purposes; and

●	any distributions the Shareholder receives with respect to the Shares under the loan agreement will be
fully taxable to the Shareholder, most likely as ordinary income for U.S. federal income tax purposes.

Shareholders desiring to avoid these
and other possible consequences of a deemed disposition of their Shares should consider modifying any applicable brokerage account agreements
to prohibit the lending of their Shares.

Other U.S. Federal Income Tax
Matters

Information
Reporting The Fund provides tax information to the Shareholders and to the IRS, as required. Shareholders of the Fund are treated
as partners in a partnership for U.S. federal income tax purposes. Accordingly, the Fund will furnish Shareholders each year with tax
information on IRS Schedule K-1 (Form 1065), which will be used by the Shareholders in completing their U.S. federal income tax returns.
The IRS has ruled that assignees of partnership interests who have not been admitted to a partnership as partners but who have the capacity
to exercise substantial dominion and control over the assigned partnership interests will be considered partners for U.S. federal income
tax purposes. On the basis of this ruling, except as otherwise provided herein, we will treat as a Shareholder any person whose Shares
are held on that person’s behalf by a broker or other nominee if that person has the right to direct the nominee in the exercise
of all substantive rights attendant to the ownership of the Shares.

Persons who hold an interest in the
Fund as a nominee for another person are required to furnish to us the following information: (1) the name, address and taxpayer identification
number of the beneficial owner and the nominee; (2) whether the beneficial owner is (a) a person that is not a U.S. person, (b) a foreign
government, an international organization or any wholly-owned agency or instrumentality of either of the foregoing, or (c) a tax-exempt
entity; (3) the number and a description of Shares acquired or transferred for the beneficial owner; and (4) certain information including
the dates of acquisitions and transfers, means of acquisitions and transfers, and acquisition cost for purchases, as well as the amount
of net proceeds from sales. Brokers and financial institutions are required to furnish additional information, including whether they
are U.S. persons and certain information on Shares they acquire, hold or transfer for their own account. A penalty of $250 per failure
(as adjusted for inflation), up to a maximum of $3,000,000 per calendar year (as adjusted for inflation), is imposed by the Code for failure
to report such information correctly to the Fund. If the failure to furnish such information correctly is determined to be willful, the
per failure penalty increases to $500 (as adjusted for inflation) or, if greater, 10% of the aggregate amount of items required to be
reported, and the $3,000,000 maximum does not apply. The nominee is required to supply the beneficial owner of the Shares with the U.S.
federal income tax information furnished by the Fund.

Partnership
Audit Procedures The IRS may audit the U.S. federal income tax returns filed by the Fund. Partnerships are generally treated
as separate entities for purposes of U.S. federal tax audits, judicial review of administrative adjustments by the IRS, and tax settlement
proceedings. The tax treatment of partnership items of income, gain, loss and deduction is determined at the partnership level in a unified
partnership proceeding rather than in separate proceedings with the partners.

Tax deficiencies (including interest
and penalties) that arise from an adjustment to partnership items generally are assessed and collected from the partnership (rather than
from the partners), and generally are calculated using maximum applicable tax rates (although such partnership level tax may be reduced
or eliminated under limited circumstances). A narrow category of partnerships (generally, partnerships having no more than 100 partners
that consist exclusively of individuals, C corporations, S corporations and estates) are permitted to elect out of the partnership-level
audit rules. As an alternative to partnership-level tax liability, a partnership may elect to furnish adjusted Schedule K-1s to the IRS
and to each person who was a partner in the audit year, stating such partner’s share of any partnership adjustments, and each such
partner would then take the adjustments into account on its tax returns in the year in which it receives its adjusted Schedule K-1 (rather
than by amending their tax returns for the audited year). If the Fund were subject to a partnership level tax, the economic return of
all Shareholders (including Shareholders that did not own Shares in the Fund during the taxable year to which the audit relates) may be
affected.