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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and decentralized applications. The Cardano system comprises the Cardano Network, the Cardano Blockchain, the Cardano Protocol, and Cardano Clients. ADA is the native crypto asset of the Cardano system. Cardano uses the Ouroboros PoS protocol to maintain its Blockchain where each block contains transactions and data, cryptographically linked. The Protocol includes rules for transaction processing, block creation, and consensus. Cardano Clients run on distributed computers worldwide, which interact with the Network to maintain the Blockchain, validate transactions and execute smart contracts. ADA used to pay for transaction fees on the Network, as a peer-to-peer currency for value transfer, a unit of account with the ecosystem of applications, as the economic incentive for staking and participating in consensus, and within Cardano’s governance model where ADA holders can vote on proposals. Every ADA is fractionable to the sixth decimal place, with its smallest fraction equal to 0.000001 ADA and called a “Lovelace.”

To participate in Ouroboros, ADA holders
can either operate staking pools and run Clients or delegate ADA holdings to a staking pool. Over time, pool operators are selected to
create blocks based on their share of the stake in the Network. Similarly to Bitcoin and Ethereum, network upgrades are managed through
Cardano Improvement Proposals (CIPs), with significant updates like the implementation of smart contracts happening in September 2021
via the Alonzo upgrade and further enhancements in scalability such as the launch of the Hydra second layer in May 2023.

ADA possesses a maximum supply cap
of 45 billion coins, whose distribution included an initial coin offering, in which participants bought ADA using other crypto assets
such as bitcoin and ether prior to the network’s genesis block, created in September 2017. Approximately 31.1 billion ADA were
initially distributed as follows: 648.2 million were assigned to the Cardano Foundation, 2.1 billion ADA to EMURGO, 2.5 billion ADA to
IOHK, and 25.9 billion ADA were sold to the public during the ICO. The remaining ADA supply is distributed over time through staking rewards.
When a stake pool successfully creates a block, it earns a reward to be shared among the pool’s operators and delegators. The reward
consists of a base reward, a fixed amount of ADA awarded for creating a block, and fees paid by users whose transactions are included
in the block. In October 2025, the circulating supply of ADA was approximately 36 billion coins.

To incentivize decentralization of
the capital among staking operators, pools with a larger stake receive more opportunities to create blocks, but the reward distribution
mechanism ensures that smaller pools can still be viable. There’s a saturation point beyond which additional stake in a pool does
not yield additional rewards, encouraging the delegation of ADA to multiple pools for a more decentralized network. A portion of the block
reward is also allocated to a community treasury, which can be used for funding projects through Cardano’s governance system. While
new ADA is minted through staking rewards, the rate of issuance is designed to become increasingly less inflationary over time. This controlled
inflation aims to balance incentivizing participation with maintaining the value of ADA, with rewards from staking expected to decrease
as more ADA is staked, reducing the overall issuance rate.

Being a smart contracts platform, Cardano
directly competes with networks like Ethereum and Solana, distinguishing itself with its academic approach to blockchain development,
emphasizing peer-reviewed research. The network’s evolution, particularly in smart contract capabilities, positions ADA as an integral
part of Cardano’s broader ecosystem for decentralized applications. As such, the value of ADA is determined, in part, by the supply
of and demand for ADA in the global crypto market, market expectations for the adoption of Cardano as a novel technological platform for
DApps, the number of merchants that accept ADA as a form of payment, the volume of peer-to-peer transactions involving the asset, among
other factors.

AVAX (Avalanche Blockchain)

Avalanche is a scalable, interoperable
blockchain platform designed for high throughput and low latency, supporting DApps, custom blockchains called subnets, and asset creation.
The Avalanche system comprises the Avalanche Network, the Avalanche Blockchain, the Avalanche Protocol, and Avalanche Clients. AVAX is
the native crypto asset of the Avalanche system.

Avalanche utilizes a novel consensus
protocol known as the Avalanche Consensus, a novel implementation of PoS based on repeated sub-sampling of validators to reach consensus
quickly, offering speed and scalability over other PoS variants. The Avalanche Protocol governs how transactions are validated, blocks
are created, and consensus is achieved across three primary blockchains: the X-Chain for asset creation, the C-Chain for creation of smart
contracts compatible with the Ethereum Virtual Machine (EVM), and the P-Chain for coordinating validators and subnets (to be defined below).

Nodes on the network run clients to
validate transactions and maintain the network, categorized into types based on their roles within the three chains. It’s possible
to use Avalanche to create customizable blockchains known as subnets, allowing for private or public networks with their own set of validators,
enhancing scalability and customization for specific applications. Network upgrades are managed through Avalanche Improvement Proposals
(AIPs), with updates focusing on improving network functionality, interoperability, and performance.

AVAX is used to pay for transaction
fees on the Network, as a peer-to-peer currency for value transfer, a unit of account with the ecosystem of applications, and as the economic
incentive for staking and participating in consensus. AVAX is also used for creating and interacting with subnets. Every AVAX is fractionable
to the ninth decimal place, with its smallest fraction equal to 0.000000001 AVAX and called a nanoAVAX or nAVAX.

AVAX has a maximum supply cap of 716
million coins. 360 million coins were minted at network’s genesis in September 2020, and the other half of the AVAX tokens are minted
over time as a reward to validators securing the system. The initial supply was primarily distributed to the Avalanche Team, the Avalanche
Foundation, the community and development endowment, strategic partnerships; publicly sold in an ICO, privately sold, or sold in a seed
round; or airdropped to early users of the ecosystem. Most of this initial distribution was subject to vesting schedules, fostering long-term
commitment of the entities involved in the launch of Avalanche. Transaction fees on Avalanche are not reverted to validators but rather
burned, being permanently removed from the asset’s circulating supply. The issuance of new AVAX is governed by dynamic parameters,
which over time determine the future supply expansion rate subject to the asymptotic maximum cap. As of October 2025, the circulating
supply of AVAX was approximately 422 million coins.

Avalanche competes directly with networks
like Ethereum, Solana and Cardano, standing out due to its focus on speed, scalability, and the ability to create customized subnets,
aiming to offer a platform where developers can build in a more flexible and efficient environment compared to other blockchain ecosystems.
The value of AVAX is determined, in part, by the supply of and demand for AVAX in the global crypto market, market expectations for the
adoption of Avalanche as a novel technological platform for DApps, the number of merchants that accept AVAX as a form of payment, the
volume of peer-to-peer transactions involving the asset, among other factors.

Litecoin (Litecoin System)

Litecoin is a decentralized, open-source
blockchain designed for peer-to-peer transactions. Its system comprises the Litecoin Network, the Litecoin Blockchain, the Litecoin Protocol,
and Litecoin Clients. The native crypto asset of the Litecoin system is litecoin (LTC).

The Litecoin system was created as an
alternative to the Bitcoin System with a block time of 2.5 minutes (rather than Bitcoin’s 10 minutes) and a different mining
algorithm called Scrypt, intended to be more memory-intensive, making it less susceptible to mining using application-specific integrated
circuits (ASICs) and promoting a more decentralized block creation process. The Litecoin Blockchain records all transactions in blocks,
with each block linked to all its predecessors via a strong cryptographic tie created by its proof-of-work consensus mechanism. Clients
allow users to interact with the Litecoin Network to send value and miners to generate proof-of-work and append new blocks to the Litecoin
Blockchain. Litecoin Network upgrades are managed through Litecoin Improvement Proposals (LIPs), with updates focusing on enhancing privacy,
scalability, and security. In particular, Litecoin has served as a testing ground for innovations that have later been adopted or considered
by Bitcoin, like SegWit and the Lightning Network, emphasizing its role in the broader crypto asset ecosystem as both a currency and a
platform for technological experimentation.

LTC is used in peer-to-peer transactions
to pay for goods and services, stored for future use, or converted to government-backed currency such as the U.S. dollar. It has a maximum
supply cap of 84 million coins, with every LTC fractionable to the eighth decimal place, and its smallest fraction equal to 0.00000001
LTC and called a “Litoshi” (analogously to Bitcoin Satoshis).