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

Chunk 36 of 66
Word Count: 1444
Character Count: 9362

Document Content:

included in the Fund’s investment strategy. The Fund is not a registered investment company, so Shareholders do not have the protections of the Investment Company Act The Fund is not an investment company subject to the Investment Company Act. Accordingly, the Fund’s Shareholders do not have the protections expressly provided by that statute, including: provisions preventing Fund insiders from managing the Fund to their benefit and to the detriment of Fund Shareholders; provisions preventing the Fund from issuing securities having inequitable or discriminatory provisions; provisions preventing Fund management by irresponsible persons; provisions preventing the use of unsound or misleading methods of computing Fund earnings and asset value; provisions prohibiting suspension of redemptions (except under limited circumstances); provisions limiting Fund leverage; provisions imposing a fiduciary duty on the managers with respect to receipt of compensation for services; and provisions preventing changes in the Fund’s character without the consent of Fund Shareholders.

In addition, the Fund will not hold
or trade in commodity interests regulated by the CEA, as administered by the CFTC. Furthermore, the Sponsor believes that the Fund is
not a commodity pool for purposes of the CEA, and that neither the Sponsor nor the Trustee is subject to regulation by the CFTC as a commodity
pool operator or a commodity trading advisor in connection with the operation of the Fund. Consequently, Shareholders will not have the
regulatory protections provided to investors in CEA-regulated instruments or commodity pools.

There are technical risks inherent
in the trading system the Sponsor intends to employ

The Sponsor’s order management
system is a broadly used and well-known computer-based system that utilizes external data feeds of market information. The Sponsor can
experience business interruptions if its order management system or data feeds are disrupted or corrupted. For further discussion of technical
and business continuity risks to the Fund’s and the Sponsor’s systems, see the discussion under the caption “Event Risk”
below.

Several factors may affect the
Fund’s ability to achieve its investment objective on a consistent basis

There can be no assurance that the
Fund will achieve its investment objective. Prospective investors should read this entire prospectus and consult with their own advisers
before subscribing for Shares. Factors that may affect the Fund’s ability to meet its investment objective include: (1) Fund’s
ability to purchase and sell crypto assets in an efficient manner to effectuate creation and redemption orders; (2) transaction fees associated
with the Eligible Asset Networks; (3) the crypto asset market becoming illiquid or disrupted; (4) the need to conform the Fund’s
portfolio holdings to comply with investment restrictions or policies or regulatory or tax law requirements; (5) early or unanticipated
closings of the markets on which the Eligible Assets trade, resulting in the inability of Fund to execute intended portfolio transactions;
and (6) accounting standards.

There is no assurance of the
Sponsor’s continued services, and discontinuance may be detrimental to the Fund

There is no assurance that the Sponsor
will be willing or able to continue to service the Fund for any length of time. If the Sponsor discontinues its activities on behalf of
the Fund or other investment Fund complex, the Fund may be adversely affected.

The Sponsor may manage a large
number of assets, and this could affect the Fund’s ability to trade profitably

Increases in assets under management
may affect trading decisions. The Sponsor does not intend to limit the amount of Fund assets. The more assets the Sponsor manages, the
more difficult it may be for it to trade profitably because of the difficulty of trading larger positions without adversely affecting
prices and performance and of managing risk associated with larger positions.

The Sponsor relies heavily on
key personnel. The departure of any such key personnel could negatively impact the Fund’s operations and adversely impact an investment
in the Fund

The Sponsor relies heavily on key
personnel to manage its activities. These key personnel intend to allocate their time managing the Fund in a manner that they deem appropriate.
If such key personnel were to leave or be unable to carry out their present responsibilities, it may have an adverse effect on the management
of the Sponsor.

Shareholders have no right or power
to take part in the management of the Fund. Accordingly, no investor should purchase Shares unless such investor is willing to entrust
all aspects of the management of the Fund to the Sponsor.

In addition, certain personnel performing
services on behalf of the Sponsor will be shared with the affiliates of the Sponsor, including with respect to execution, Fund operations
and legal, regulatory and tax oversight. Such individuals will devote a small percentage of their time to those activities.

Additionally, there can be no assurance
that all of the personnel who provide services to the Fund will continue to be associated with the Fund for any length of time. The loss
of the services of one or more such individuals could have an adverse impact on the Fund’s ability to realize its investment objective.

The liability of the Sponsor
and the Trustee are limited, and the value of the Shares will be adversely affected if the Fund is required to indemnify the Trustee or
the Sponsor

Under the Trust Agreement, the Trustee
and the Sponsor are not liable, and have the right to be indemnified, for any liability or expense incurred absent gross negligence or
willful misconduct on the part of the Trustee or Sponsor, as the case may be. That means the Sponsor may require the assets of the Fund
to be sold in order to cover losses or liability suffered by the Sponsor or by the Trustee. Any sale of that kind would reduce the NAV
of the Fund and the value of its Shares.

The Fund may incur higher fees
and expenses upon renewing existing or entering into new contractual relationships

The arrangements between clearing
brokers and counterparties on the one hand and the Fund on the other generally are terminable by the clearing brokers or counterparty
upon notice to the Fund. In addition, the agreements between the Fund and its third-party service providers, such as the Custodians, are
generally terminable at specified intervals. Upon termination, the Sponsor may be required to renegotiate or make other arrangements for
obtaining similar services if the Fund intends to continue to operate. Comparable services from another party may not be available, or
even if available, these services may not be available on the terms as favorable as those of the expired or terminated arrangements.

The Fund is actively-managed,
which may result in performance and cost differences compared to a passively-managed fund

Unlike passively-managed crypto ETPs
that seek to track an index by replicating the index’s holdings and weights, the Fund’s performance depends on the Sponsor actively
selecting Eligible Assets, determining portfolio weights and the timing for these transactions without regard to an index. If the Sponsor’s
judgments about the attractiveness, value, or market trends affecting particular Eligible Assets prove to be incorrect, the Fund may underperform
passively-managed crypto ETPs that track the Index or similar benchmarks. The Sponsor’s judgments about the attractiveness, value,
or potential appreciation of the Fund’s investments may prove to be incorrect. The Fund could underperform other ETPs (whether actively-managed
or otherwise) with a similar index as the Index or similar investment program if the Fund’s investment selections or overall strategies
fail to produce the intended results. Regulatory, tax, or other developments may affect the investment strategies available to the Sponsor,
which could adversely affect the ability to implement the Fund’s overall investment program and achieve the Fund’s investment
objective. The Fund uses a reference rate for pricing crypto assets, which is different from the reference rate used by the Index. Therefore,
there may be performance differences attributed to the different reference rates, as well as 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).