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: 2026-04-27
Accession Number: 0001999371-26-009120
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2089855/000199937126009120/activecrypto-s1a_042726.htm

Chunk 52 of 65
Word Count: 1424
Character Count: 9161

Document Content:

as the Distributor, under the Underwriting Agreement. The Distributor is registered as a broker-dealer under the Exchange Act and is a member of the Financial Industry Regulatory Authority, Inc. (FINRA). The Distributor is located at 1307 Point Street, Baltimore, Maryland 21231. The Fund has engaged the Distributor to provide the following services: acting as the agent of the Fund in connection with the sale of Shares in the various states in which the Distributor is qualified as a broker-dealer, managing creation and redemption orders, and marketing Shares. No sales charges are paid by Shareholders or the Fund, no compensation is paid to the Distributor, and the Distributor does not receive any underwriting discount from the sale of Shares. The Underwriting Agreement also allows the Distributor to enter into agreements with affiliated entities to offer and sell Shares of the Fund, under limited conditions, to certain investors outside the United States.

Pursuant to the terms of the Underwriting
Agreement, the Distributor is responsible for working with the Sponsor, Administrator, and Transfer Agent to review and approve, or reject,
purchase and redemption orders of Creation Units placed by Authorized Participants. The Distributor has agreed to use its best efforts
to obtain orders for Creation Units of Shares from Authorized Participants but is under no obligation to purchase or sell any specific
amount of Shares. The Distributor also is responsible for reviewing, approving, and, where necessary, filing the marketing materials prepared
by the Fund, or its other service providers, for compliance with applicable SEC and FINRA laws, rules, and regulations, including any
advertising laws, rules, and regulations. The Distributor will not engage in any stabilizing transactions, short sales, covering transactions
or penalty bids with respect to the Shares.

In accordance with the terms of
the Underwriting Agreement, the Distributor is liable and holds the Fund harmless for any losses that the Fund may sustain as the result
of any wrongful act by the Distributor or its directors, officers, employees, or representatives, or any untrue statement or alleged untrue
statement or omission or alleged omission of material fact contained in a registration statement, shareholder report, or other information
covering Shares filed or made public by the Fund, if such statement or omission was made in reliance upon information furnished to the
Fund by the Distributor. Similarly, the Fund indemnifies and holds harmless the Distributor and its directors, officers, employees, representatives,
and controlling persons against losses arising from (i) any wrongful act by the Fund or its directors, officers, employees, or representatives,
(ii) breaches of the Fund’s representations or warranties to the Distributor, (iii) claims brought by an Authorized Participant (provided
the Distributor has not acted with willful misfeasance, bad faith, or gross negligence), or (iv) any untrue statement, alleged untrue
statement, omission, or alleged omission of material fact in a registration statement, shareholder report, or other information if made
in reliance upon information furnished to the Distributor by the Fund. Neither party’s indemnification obligations extend to losses resulting
from the indemnified party’s own willful misfeasance, bad faith, or gross negligence. Also, the Distributor or the Fund may both terminate
the Underwriting Agreement upon sixty (60) days’ written notice to one another, or forthwith if the other party declines to make
amendments necessary to comply with regulatory requirements.

More Information about the Performance Benchmark

The Index is owned, administered
and calculated by FTSE International Limited (the “Index Provider”). The Index Provider is a company incorporated and registered
in England, and its principal offices are located at 10 Paternoster Square, London, EC4M 7LS, United Kingdom. The Index Provider is experienced
in calculating and administering digital asset indices. The Index Provider is unaffiliated with the Sponsor. Pursuant to an agreement
between the Administrator and the Index Provider (Index Agreement), the Fund may use the Index data for an initial twelve month subscription
period, after which it shall automatically renew for further terms of one year each. Either party may elect to not renew the subscription
by providing at least thirty days’ written notice prior to the expiration of the then current term.

FEDERAL INCOME TAX CONSEQUENCES

The following discussion summarizes
the material U.S. federal income tax consequences of the purchase, ownership and disposition of Shares of the Fund and the U.S. federal
income tax treatment of the Fund. The discussion represents, insofar as it describes conclusions as to U.S. federal income tax law
and subject to the limitations and qualifications described below, the opinion of Dechert LLP. The opinion of Dechert LLP, however, is
not binding on the United States Internal Revenue Service (IRS) or on the courts and does not preclude the IRS from taking a contrary
position. Except where noted otherwise, it deals only with the U.S. federal income tax consequences relating to Shares held as capital
assets by U.S. Shareholders (as defined below) who are not subject to special tax treatment. For example, in general it does not address
the tax consequences to, such as, but not limited to, dealers in securities or currencies or commodities, traders in securities or dealers
or traders in commodities that elect to use a mark to market method of accounting, financial institutions, regulated investment companies
(except as discussed below), tax-exempt entities (except as discussed below), insurance companies, persons holding Shares as a part of
a position in a “straddle” or as part of a “hedging,” “conversion” or other integrated transaction
for U.S. federal income tax purposes, persons with “applicable financial statements” within the meaning of section 451(b)
of the Internal Revenue Code of 1986, as amended (the “Code”), or holders of Shares whose “functional currency”
is not the U.S. dollar. Furthermore, the discussion below is based on the provisions of the Code, and regulations (Treasury Regulations),
rulings and judicial decisions thereunder as of the date of this prospectus, and such authorities may be repealed, revoked or modified
(possibly with retroactive effect) so as to result in U.S. federal income tax consequences different from those discussed below. Further,
the U.S. federal income tax treatment of certain crypto asset transactions continues to evolve, and legislation or future administrative
guidance could result in U.S. federal income tax consequences that differ from those discussed below.

No ruling has been or will be requested
from the IRS with respect to any matter affecting the Fund or prospective investors, and the IRS may disagree with the tax positions taken
by the Fund. If the IRS were to challenge the Fund’s tax positions in litigation, they might not be sustained by the courts. No
statutory, administrative or judicial authority directly addresses the treatment of the Shares or instruments similar to the Shares for
U.S. federal income tax purposes. As a result, the Fund cannot assure investors that the IRS or the courts will agree with the tax consequences
described herein. A different treatment from that described below could adversely affect the amount, timing and character of income, gain
or loss in respect of an investment in the Shares and could adversely affect the value of the Shares.

As used herein, the term “U.S.
Shareholder” means a Shareholder that is, for U.S. federal income tax purposes, (i) a citizen or resident of the United States,
(ii) a corporation created or organized in or under the laws of the United States or any political subdivision thereof, (iii) an estate
the income of which is subject to U.S. federal income taxation regardless of its source or (iv) a trust that (a) is subject to the supervision
of a court within the United States and the control of one or more United States persons as described in section 7701(a)(30) of the Code,
or (b) has a valid election in effect under applicable Treasury Regulations to be treated as a United States person. A “Non-U.S.
Shareholder” is a holder that is not a U.S. Shareholder nor a partnership for U.S. federal income tax purposes. If a partnership
or other entity or arrangement treated as a partnership holds our Shares, the tax treatment of a partner will generally depend upon the
status of the partner and the activities of the partnership. If you are a partner of a partnership holding our Shares, the discussion
below may not be applicable to you and you should consult your own tax advisor regarding the tax consequences of acquiring, owning and
disposing of Shares.

EACH PROSPECTIVE INVESTOR IS ADVISED
TO CONSULT ITS OWN TAX ADVISOR REGARDING THE U.S. FEDERAL INCOME TAX CONSEQUENCES OF AN INVESTMENT IN SHARES, AS WELL AS ANY APPLICABLE
STATE, LOCAL OR FOREIGN TAX CONSEQUENCES, IN LIGHT OF ITS PARTICULAR CIRCUMSTANCES.

Tax Classification of the Fund