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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or enter into royalty or licensing agreements. The Fund may experience substantial losses on transactions if the computer or communications system fails The Fund’s trading activities depend on the integrity and performance of the computer and communications systems supporting them. Extraordinary transaction volume, hardware or software failure, power or telecommunications failure, a natural disaster, cyber-attack or other catastrophe could cause the computer systems to operate at an unacceptably slow speed or even fail. Any significant degradation or failure of the systems that the Sponsor uses to gather and analyze information, enter orders, process data, monitor risk levels and otherwise engage in trading activities may result in substantial losses on transactions, liability to other parties, lost profit opportunities, damages to the Sponsor’s and Fund’s reputations, increased operational expenses and diversion of technical resources. If the computer and communications systems are not upgraded when necessary, the Fund’s financial condition could be harmed

The development of complex computer
and communications systems and new technologies may render the existing computer and communications systems supporting the Fund’s
trading activities obsolete. In addition, these computer and communications systems must be compatible with those of third parties, such
as the systems of exchanges, clearing brokers and the executing brokers. As a result, if these third parties upgrade their systems, the
Sponsor will need to make corresponding upgrades to effectively continue its trading activities. The Sponsor may have limited financial
resources for these upgrades or other technological changes. The Fund’s future success may depend on the Sponsor’s ability
to respond to changing technologies on a timely and cost-effective basis.

The Fund depends on the reliable
performance of the computer and communications systems of third parties, such as brokers, and may experience substantial losses on transactions
if they fail

The Fund depends on the proper and
timely function of complex computer and communications systems maintained and operated by crypto asset market makers, exchanges and Custodians,
brokers and other data providers that the Sponsor uses to conduct trading activities. Failure or inadequate performance of any of these
systems could adversely affect the Sponsor’s ability to complete transactions, including its ability to close out positions, and
result in lost profit opportunities and significant losses. This could have a material adverse effect on revenues and materially reduce
the Fund’s available capital. Unavailability of records from brokerage firms may make it difficult or impossible for the Sponsor
to accurately determine which transactions have been executed or the details, including price and time, of any transaction executed. This
unavailability of information also may make it difficult or impossible for the Sponsor to reconcile its records of transactions with those
of another party or to accomplish settlement of executed transactions.

An investment in the Fund faces
numerous risks from its Shares being traded in the secondary market, any of which may lead to the Fund’s Shares trading at a premium
or discount to NAV

Although the
Fund’s Shares are listed for trading on the Exchange, there can be no assurance that an active trading market for such Shares
will develop or be maintained. Trading in the Fund’s Shares may be halted due to market conditions or for reasons that, in the
view of the Exchange, make trading in Shares inadvisable. There can be no assurance that the requirements of the Exchange necessary
to maintain the listing of the Fund will continue to be met or will remain unchanged or that the Shares will trade with any volume,
or at all. The NAV of the Fund’s Shares will generally fluctuate with changes in the market value of the Fund’s
portfolio holdings. The market prices of Shares will generally fluctuate in accordance with changes in the Fund’s NAV and
supply and demand of Shares on the Exchange. It cannot be predicted whether the Fund’s Shares will trade below at or above
their NAV. Investors who buy the Fund’s Shares at a market price that is a premium to NAV face a risk of loss if the market
price of their Shares subsequently converges with NAV per Share. Investors buying or selling Fund Shares in the secondary market
will pay brokerage commissions or other charges imposed by brokers as determined by that broker. Brokerage commissions are often a
fixed amount and may be a significant proportional cost for investors seeking to buy or sell relatively small amounts of Shares.

The Exchange may halt trading in
the Shares, which would adversely impact the ability to sell Shares

Trading in Shares of the Fund may be
halted by the Exchange due to market conditions or, in light of the Exchange rules and procedures, for reasons that, in view of the Exchange,
make trading in Shares inadvisable. These may include: (1) the extent to which trading is not occurring in the Eligible Assets underlying
the Shares; or (2) whether other unusual conditions or circumstances detrimental to the maintenance of a fair and orderly market are present.
In addition, market conditions that would result in trading halts may also include extraordinary market volatility that trigger rules
requiring trading to be halted for a specified period based on a specified market decline. There can be no assurance that the requirements
necessary to maintain the listing of the Shares will continue to be met or will remain unchanged. The Fund will be terminated if its Shares
are delisted.

An investment in the Fund may be
adversely affected by competition from other investment vehicles focused on crypto assets

The Fund will compete with direct investments
in crypto assets, investment vehicles that include securities backed by or linked to crypto assets, and other investment vehicles that
focus on crypto assets. Market and financial conditions, and other conditions beyond the Fund’s control, such as the timing of reaching
the market and the Fund’s fee structure relative to other investment vehicles, may make it more attractive to invest in other vehicles.
To the extent that the Fund has relatively higher fees than other such investment vehicles, this could impede growth of the Fund, possibly
result in a lower NAV per Share. The competition from other investment vehicles focused on crypto assets could have a detrimental effect
on the scale and sustainability of the Fund.

Anonymity and illicit financing
risk of crypto assets could harm the Fund

Although transaction details of peer-to-peer
transactions are recorded on the crypto assets blockchain, a buyer or seller of crypto assets on a peer-to-peer basis directly on the
network may never know to whom the public key belongs or the true identity of the party with whom it is transacting. Public key addresses
are randomized sequences of alphanumeric characters that, standing alone, do not provide sufficient information to identify users. In
addition, certain technologies may obscure the origin or chain of custody of crypto assets. The opaque nature of the market poses asset
verification challenges for market participants, regulators and auditors and gives rise to an increased risk of manipulation and fraud,
including the potential for Ponzi schemes, bucket shops and pump and dump schemes.

Certain crypto assets have in the past
been used to facilitate illicit activities. If a crypto asset was used to facilitate illicit activities, businesses that facilitate transactions
in such crypto assets could be at increased risk of potential criminal or civil liability or lawsuits, or of having banking or other services
cut off, and such crypto asset could be removed from crypto platforms. Any of the aforementioned occurrences could adversely affect the
price of the relevant crypto asset, the attractiveness of the respective blockchain network and an investment in the Shares. If the Fund,
the Sponsor or the Trustee were to transact with a sanctioned entity, the Fund or the Sponsor or its affiliates would be at risk of potential
criminal or civil lawsuits or liability.

The Fund takes measures with the objective
of reducing illicit financing risks in connection with the Fund’s activities. However, illicit financing risks are present in the
crypto asset markets. There can be no assurance that the measures employed by the Fund will prove successful in reducing illicit financing
risks, and the Fund is subject to the complex illicit financing risks and vulnerabilities present in the crypto asset markets. If such
risks arise, the Fund or the Sponsor or its affiliates could face civil or criminal liability, fines, penalties, or other punishments,
be subject to investigation, have their assets frozen, lose access to banking services or services provided by other service providers,
or suffer disruptions to their operations, any of which could negatively affect the Fund’s ability to operate or cause losses in
value of the Shares.