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

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convention, an investor who purchases and sells a Share during the same month, and therefore does not hold (and is not deemed to hold) the Share at the close of the last trading day of either that month or the previous month, will receive no allocations with respect to that Share for any period. Accordingly, investors may receive no allocations with respect to Shares that they actually held or may receive allocations with respect to Shares attributable to periods that they did not actually hold the Shares. By investing in Shares, a U.S. Shareholder agrees that, in the absence of new legislation, regulatory or administrative guidance, or judicial rulings to the contrary, it will file its U.S. income tax returns in a manner that is consistent with the monthly allocation convention as described above and with the IRS Schedule K-1 or any successor form provided to Shareholders by the Fund.

For any month in which a Creation
Basket is issued or a Redemption Basket is redeemed, the Fund will credit or debit the “book” capital accounts of existing
Shareholders with the amount of any unrealized gain or loss, respectively, on Fund assets. For this purpose, the Fund will use a convention
whereby unrealized gain or loss will be computed based on the lowest NAV of the Fund’s assets during the month in which Shares are
issued or redeemed, which may be different than the value of the assets on the date of an issuance or redemption. The capital accounts
as adjusted in this manner will be used in making tax allocations intended to account for differences between the tax basis and fair market
value of property owned by the Fund at the time new Shares are issued or outstanding Shares are redeemed (so-called “reverse Code
section 704(c) allocations”). The intended effect of these adjustments is to equitably allocate among Shareholders any unrealized
appreciation or depreciation in the Fund’s assets existing at the time of a contribution or redemption for book and tax purposes.

The conventions used by the Fund,
as noted above, in making tax allocations may cause a Shareholder to be allocated more or less income or loss for U.S. federal income
tax purposes than its proportionate share of the economic income or loss realized by the Fund during the period such Shareholder held
the Shares. This mismatch between taxable and economic income or loss in some cases may be temporary, reversing itself in a later year
when the Shares are sold, but could be permanent. As one example, a Shareholder could be allocated income accruing after it sold its Shares,
resulting in an increase in the basis of the Shares (see “Tax Basis of Shares,” below). In connection with the disposition
of the Shares, the additional basis might produce a capital loss the deduction of which may be limited (see “Limitations on Deductibility
of Losses and Certain Expenses,” below).

Section
754 election The Fund intends to make the election permitted by section 754 of the Code, which election is irrevocable
without the consent of the IRS. The effect of this election is that when a secondary market sale of Shares occurs, the Fund adjusts
the purchaser’s proportionate share of the tax basis of the Fund’s assets to fair market value, as reflected in the
price paid for the Shares, as if the purchaser had directly acquired an interest in the Fund’s assets. The section 754
election is intended to eliminate disparities between a partner’s basis in its partnership interest and its share of the tax
basis of the partnership’s assets, so that the partner’s allocable share of taxable gain or loss on a disposition of an
asset will correspond to its share of the appreciation or depreciation in the value of the asset since such partner acquired its
interest. Depending on the price paid for Shares and the tax basis of the Fund’s assets at the time of the purchase, the
effect of the section 754 election on a purchaser of Shares may be favorable or unfavorable. In order to make the appropriate basis
adjustments in a cost-effective manner, the Fund will use certain simplifying conventions and assumptions. In particular, the Fund
will obtain information regarding secondary market transactions in its Shares and use this information to adjust the
Shareholders’ indirect basis in the Fund’s assets. It is possible the IRS could successfully assert that the conventions
and assumptions applied are improper and require different basis adjustments to be made, which could adversely affect some
Shareholders.

Limitations
on Deductibility of Losses and Certain Expenses A number of different provisions of the Code may defer or disallow the deduction
of losses or expenses allocated to Shareholders by the Fund, including but not limited to those described below.

A Shareholder’s deduction of
its allocable share of any loss of the Fund is limited to the lesser of (1) the tax basis in such Shareholder´s Shares or (2) in
the case of a Shareholder that is an individual or a closely held corporation, the amount which the Shareholder is considered to have
“at risk” with respect to the Fund’s activities. In general, the amount at risk initially will be a Shareholder’s
invested capital. Losses in excess of the amount at risk must be deferred until years in which the Fund generates additional taxable income
against which to offset such carryover losses or until additional capital is placed at risk.

Individuals and other non-corporate
taxpayers are permitted to deduct capital losses only to the extent of their capital gains for the taxable year plus $3,000 of other income.
Unused capital losses can be carried forward and used in future years, subject to these same limitations. Corporate taxpayers generally
may deduct capital losses only to the extent of capital gains, subject to special carryback and carryforward rules.

Expenses classified for U.S. federal
income tax purposes as “miscellaneous itemized deductions,” generally including investment-related expenses (other than interest
and certain other specified expenses), are not deductible for non-corporate taxpayers. Although the matter is not free from doubt, we
believe management fees the Fund pays to the Sponsor and other expenses of the Fund will constitute non-deductible miscellaneous itemized
deductions rather than expenses incurred in connection with a trade or business and will report these expenses consistent with that interpretation.

For taxable years beginning on or
before December 31, 2025, the Code imposes additional limitations on the amount of certain itemized deductions allowable to individuals
with adjusted gross income in excess of certain amounts by reducing the otherwise allowable portion of such deductions by an amount equal
to the lesser of:

●	3% of the individual’s adjusted gross income in excess of certain threshold amounts; or

●	80% of the amount of certain itemized deductions otherwise allowable for the taxable year.

For taxable years beginning on or
after January 1, 2026, the Code provides that the amount of the itemized deductions otherwise allowable for the taxable year shall be
reduced by 2/37 of the lesser of (1) such amount of itemized deductions, or (2) so much of the taxable income of the taxpayer for the
taxable year as exceeds the dollar amount at which the 37% rate bracket under Code section 1 begins with respect to the taxpayer. Non-corporate
Shareholders generally may deduct “investment interest expense” only to the extent of their “net investment income.”
Investment interest expense of a Shareholder will generally include any interest expense accrued by the Fund and any interest paid or
accrued on direct borrowings by a Shareholder to purchase or carry its Shares, such as interest with respect to a margin account. Net
investment income generally includes gross income from property held for investment (including “portfolio income” under the
passive loss rules but not, absent an election, long-term capital gains or certain qualifying dividend income) less deductible expenses
other than interest directly connected with the production of investment income.

If the Fund incurs indebtedness that
is treated as allocable to a trade or business, the Fund’s ability to deduct interest on such indebtedness allocable is limited
to an amount equal to the sum of (1) the Fund’s business interest income during the year and (2) 30% of the Fund’s adjusted
taxable income for such taxable year. If the Fund is not entitled to fully deduct its business interest in any taxable year, such excess
business interest expense will be allocated to each Shareholder as excess business interest and can be carried forward by the Shareholder
to successive taxable years to offset any excess taxable income allocated by the Fund to such Shareholder. Any excess business interest
expense allocated to a Shareholder will reduce such Shareholder’s basis in its Shares in the year of the allocation even if the
expense does not give rise to a deduction to the Shareholder in that year. Immediately prior to a Shareholder’s disposition of its
Shares, the Shareholder’s basis will be increased by the amount by which such basis reduction exceeds the excess business interest
expense that has been deducted by such Shareholder.