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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tax benefits. They could require disclosure by the Fund or Shareholders if a Shareholder incurs a loss in excess of a specified threshold from a sale or redemption of its Shares and possibly in other circumstances. While these rules generally do not require disclosure of a loss recognized on the disposition of an asset in which the taxpayer has a “qualifying basis” (generally a basis equal to the amount of cash paid by the taxpayer for such asset), they apply to a loss recognized with respect to interests in a pass-through entity, such as the Shares, even if the taxpayer’s basis in such interests is equal to the amount of cash it paid. In addition, significant monetary penalties may be imposed in connection with a failure to comply with these reporting requirements. Investors should consult their own tax advisor concerning the application of these reporting requirements to their specific situation.

Tax-Exempt
Organizations Subject to numerous exceptions, qualified retirement plans and individual retirement accounts, charitable organizations
and certain other organizations that otherwise are exempt from U.S. federal income tax (collectively, “exempt organizations”)
nonetheless are subject to the tax on unrelated business taxable income (UBTI). Generally, UBTI means the gross income derived by an exempt
organization from a trade or business that it regularly carries on, the conduct of which is not substantially related to the exercise
or performance of its exempt purpose or function, less allowable deductions directly connected with that trade or business. If the Fund
were to regularly carry on (directly or indirectly) a trade or business that is unrelated with respect to an exempt organization Shareholder,
then in computing its UBTI, the Shareholder must include its share of (1) the Fund’s gross income from the unrelated trade or business,
whether or not distributed, and (2) the Fund’s allowable deductions directly connected with that gross income. An exempt organization
that has more than one unrelated trade or business generally must compute its UBTI separately for each such trade or business. UBTI generally
does not include dividends, interest, or payments with respect to securities loans and gains from the sale of property (other than property
held for sale to customers in the ordinary course of a trade or business). Nonetheless, income on, and gain from the disposition of, “debt-financed
property” is UBTI. Debt-financed property generally is income-producing property (including securities), the use of which is not
substantially related to the exempt organization’s tax-exempt purposes, and with respect to which there is “acquisition indebtedness”
at any time during the taxable year (or, if the property was disposed of during the taxable year, the 12-month period ending with the
disposition). Acquisition indebtedness includes debt incurred to acquire property, debt incurred before the acquisition of property if
the debt would not have been incurred but for the acquisition, and debt incurred subsequent to the acquisition of property if the debt
would not have been incurred but for the acquisition and at the time of acquisition the incurrence of debt was foreseeable. The portion
of the income from debt-financed property attributable to acquisition indebtedness is equal to the ratio of the average outstanding principal
amount of acquisition indebtedness over the average adjusted basis of the property for the year. The Fund currently does not anticipate
that it will borrow money to acquire investments; however, the Fund cannot be certain that it will not borrow for such purpose in the
future, which could result in an exempt organization Shareholder having UBTI. In addition, an exempt organization Shareholder that incurs
acquisition indebtedness to purchase its Shares in the Fund may have UBTI.

Under existing IRS guidance, staking
rewards, hard forks, airdrops and similar occurrences with respect to crypto assets are generally treated as taxable events giving rise
to ordinary income. In the absence of guidance to the contrary, it is possible that any such income recognized by an exempt organization
Shareholder could constitute UBTI. An exempt organization Shareholder should consult its own tax advisor regarding whether such Shareholder
may recognize UBTI as a consequence of an investment in the Fund.

The U.S. federal income tax rate applicable
to an exempt organization Shareholder on its UBTI generally will be either the corporate or trust tax rate, depending upon the Shareholder’s
form of organization. The Fund may report to each such Shareholder information as to the portion, if any, of the Shareholder’s income
and gains from the Fund for any year that will be treated as UBTI; the calculation of that amount is complex, and there can be no assurance
that the Fund’s calculation of UBTI will be accepted by the IRS. An exempt organization Shareholder will be required to make payments
of estimated U.S. federal income tax with respect to its UBTI.

Regulated
Investment Companies Interests in and income from “qualified publicly traded partnerships” satisfying certain gross
income tests are treated as qualifying assets and income, respectively, for purposes of determining eligibility for regulated investment
company (RIC) status. A RIC may invest up to 25% of its assets in interests in qualified publicly traded partnerships. The determination
of whether a publicly traded partnership such as the Fund is a qualified publicly traded partnership is made on an annual basis. While
the tax treatment of the crypto assets is not entirely clear, it is possible that the Fund may be a qualified publicly traded partnership.
However, such qualification is not assured, and prospective RIC investors should consult a tax advisor regarding the treatment of an investment
in the Fund under current tax rules and in light of their particular circumstances.

Non-U.S. Shareholders

Generally, non-U.S. persons who derive
U.S. source income or gain from investing or engaging in a U.S. business are taxable on two categories of income. The first category consists
of amounts that are fixed or determinable, annual or periodic income, such as interest, dividends and rent that are not connected with
the operation of a U.S. trade or business (FDAP). The second category is income that is effectively connected with the conduct of a U.S.
trade or business (ECI). FDAP income is generally subject to a 30% withholding tax, which may be reduced for certain categories of income
by a treaty between the U.S. and the recipient’s country of residence. In contrast, ECI is generally subject to U.S. tax on a net
basis at graduated rates upon the filing of a U.S. tax return. Where a non-U.S. person has ECI as a result of an investment in a partnership,
the ECI is currently subject to a withholding tax at a rate of 37% for individual Shareholders and a rate of 21% for corporate Shareholders.
The tax withholding on ECI, which is the highest tax rate under Code section 1 for non-corporate Non-U.S. Shareholders and Code section
11(b) for corporate Non-U.S. Shareholders, may increase in future tax years if tax rates increase from their current levels.

Withholding on Allocations and
Distributions

The Code provides that a non-U.S.
person who is a partner in a partnership that is engaged in a U.S. trade or business during a taxable year will also be considered to
be engaged in a U.S. trade or business during that year. Classifying an activity by a partnership as an investment or an operating business
is a factual determination. Under certain safe harbors in the Code, an investment trust whose activities consist of trading in stocks,
securities, or commodities for its own account generally will not be considered to be engaged in a U.S. trade or business unless it is
a dealer in such stocks, securities, or commodities. This safe harbor applies to investments in commodities only if the commodities are
of a kind customarily dealt in on an organized commodity exchange and if the transaction is of a kind customarily consummated at such
place. As noted above, there is limited authority on the U.S. federal income tax treatment of the crypto assets. Moreover, currently there
is no guidance regarding whether and when engaging in staking might constitute a U.S. trade or business. Accordingly, there can be no
assurance that the Fund will not be considered to be engaged in a U.S. trade or business.