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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Crypto Custodian fails to perform the functions it performs for the Fund, the Fund may be unable to operate or create or redeem Baskets, which could force the Fund to liquidate or adversely affect the price of the Shares. If any Crypto Custodian were to be required or choose, as a result of a regulatory action (including, for example, the litigation initiated by the SEC), to restrict or curtail the services it offers, it could negatively affect the Fund’s ability to operate or process creations or redemptions of Baskets, which could force the Fund to liquidate or adversely affect the price of the Shares. Any prioritization by the Crypto Custodian away from the Fund could result in inadequate attention, delays, or comparatively unfavorable commercial terms for the Fund. Such actions could harm the Fund’s operations, reduce the efficiency of its trading activities, and negatively affect the value of the Shares.

Transferring
maintenance responsibilities of the Fund’s account at the Crypto Custodian to one or more other custodians will likely be
complex and could subject the Fund’s assets to the risk of loss during the transfer, which could have a negative impact on the
performance of the Shares or result in loss of the Fund’s assets. Also, the Sponsor or Administrator may not be able to find a
party willing to serve as the custodian of the Fund’s assets or as the Fund’s agent on the same terms as its agreements
with the Crypto Custodian or at all. To the extent that the Sponsor or Administrator is not able to find a suitable party willing to
serve as the custodian or agent, the Sponsor or Administrator may be required to terminate the Fund and liquidate the Fund’s
crypto assets. In addition, to the extent that the Trustee finds a suitable party but must enter into a modified custodial agreement
that is less favorable for the Fund, the value of the Shares could be adversely affected. If the Fund is unable to find a
replacement agent, its operations could be adversely affected.

Moreover, the legal rights of customers
with respect to crypto assets held on their behalf by a third-party custodian, such as the Crypto Custodian, in insolvency proceedings
are currently uncertain.

Also, if a Crypto Custodian becomes
insolvent, suffers business failure, ceases business operations, defaults on or fails to perform their obligations under their contractual
agreements with the Fund, or abruptly discontinues the services they provide to the Fund for any reason, the Fund’s operations including
its creation and redemption processes would be adversely affected.

The Sponsor or Administrator may not
be able to find a party willing to serve as the custodian of the Fund’s crypto assets under the same terms as the current custody
agreements or at all. To the extent that the Sponsor is not able to find a suitable party willing to serve as the custodian, the Sponsor
may be required to terminate the Fund and liquidate the Fund’s assets. In addition, to the extent that the Sponsor finds a suitable
party but must enter into a modified custody agreement that is less favorable for the Sponsor or the Fund, the value of the Shares could
be adversely affected.

Part of the Fund’s assets are
held in cash and cash equivalents with the Cash Custodian and other financial institutions, if applicable. The insolvency of the Cash
Custodian and any financial institution in which the Fund holds cash and cash equivalents could result in a substantial loss of the Fund’s
cash and cash equivalents.

Similarly, if an Authorized Participant
suffers insolvency, business failure or interruption, default, failure to perform, security breach or if an Authorized Participant chooses
not to participate in the creation and redemption process of the Fund, and the Fund is unable to engage replacement Authorized Participants
on commercially acceptable terms or at all, then the creation and redemption process of the Fund, the arbitrage mechanism used to keep
the Shares in line with the NAV and the Fund’s operations generally could be negatively affected.

Authorized Participants may prioritize
their resources and trading focus away from the Fund, particularly during periods of market stress or heightened volatility, potentially
reducing the liquidity and market efficiency of the Fund’s Shares. This withdrawal could adversely impact the liquidity of the Shares,
potentially leading to increased volatility, wider bid-ask spreads, and a deviation of the Share price from its NAV, especially if the
Fund fails to attract enough Authorized Participants willing to maintain a market in the Shares. Such impacts could cause the Sponsor
to halt or suspend the creation or redemption of Shares during such times, among other consequences.

The service providers may not act
in the best interest of the Fund and have limited liability

Service providers to the Fund, including
Custodians, do not owe fiduciary duties to the Fund or the shareholders, are not required to act in their best interest and could resign
or be removed by Sponsor. The service providers, including custodians and security vendors, that the Fund employs or may employ in the
future are not trustees for, and owe no fiduciary duties to, the Fund or the Shareholders. In addition, service providers employed by
the Fund have no duty to continue to act as the custodians of the crypto assets held by the Fund.

Current or future service providers,
including Custodians and security vendors, can terminate their role as Custodian or security vendor for any reason whatsoever upon the
notice period provided under the relevant custody agreement. A service provider may also be terminated.

Additionally, the key service providers
may have limited liability. For example, the Crypto Custodian has limited liability, impairing the ability of the Fund to recover losses
relating to its crypto assets and any recovery may be limited. In addition, the Crypto Custodian may not be liable for any delay in performance
of any of its custodial obligations by reason of any cause beyond its reasonable control, including force majeure events, such as war
or terrorism, and may not be liable for any system failure or third-party penetration of its systems. As a result, the recourse of the
Fund to the Crypto Custodian may be limited. See “Custody of Crypto Assets” section for more details on the limitation of
liability of the Crypto Custodian.

Under the Trust Agreement, neither
the Trustee nor the Sponsor will be liable for any liability or expense incurred absent gross negligence or willful misconduct on the
part of the Trustee or the Sponsor (individually) or breach by the Sponsor of the Trust Agreement. As a result, the recourse of the Fund
or the Shareholders to the Trustee or the Sponsor may be limited.

Third parties may infringe upon
or otherwise violate intellectual property rights or assert that the Sponsor has infringed or otherwise violated their intellectual property
rights, which may result in significant costs, litigation, and diverted attention of Sponsor’s management

Third parties may assert that the Sponsor
has infringed or otherwise violated their intellectual property rights. Third parties may independently develop business methods, trademarks
or proprietary software and other technology similar to that of the Sponsor and claim that the Sponsor has violated their intellectual
property rights, including their copyrights, trademark rights, trade names, trade secrets and patent rights. As a result, the Sponsor
may have to litigate in the future to determine the validity and scope of other parties’ proprietary rights or defend itself against
claims that it has infringed or otherwise violated other parties’ rights. Any litigation of this type, even if the Sponsor is successful
and regardless of the merits, may result in significant costs, divert resources from the Fund, or require the Sponsor to change its proprietary
software and other technology 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