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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spot investments that meet the defined eligibility criteria (Eligible Assets). Specifically, the eligibility criteria require that the crypto asset (1) be a commodity and (2) either: • trades on a market that is an Intermarket Surveillance Group (ISG) member from which the exchange may obtain information about trading in such crypto asset from the ISG member, at all times such crypto asset is in the Fund’s portfolio; • underlies a futures contract that has been made available to trade on a designated contract market regulated by the CFTC for at least six months, provided that the Exchange has a comprehensive surveillance sharing agreement, at all times such crypto asset is in the Fund’s portfolio; or • when the crypto asset is acquired, the economic exposure to such crypto asset commodity represents at least 40% of the NAV of an exchange-traded fund that lists and trades on a national securities exchange.

As of the date of this prospectus,
based on the Sponsor’s assessment of available data, the following crypto assets are considered Eligible Assets as they meet all
eligibility criteria (ticker symbols in parenthesis): bitcoin (BTC), ether (ETH), SOL (SOL), XRP (XRP), ada (ADA), AVAX (AVAX), litecoin (LTC), DOT
(DOT), Dogecoin (DOGE), HBAR (HBAR), Bitcoin Cash (BCH), LINK (LINK), lumen (XLM), and Shiba Inu (SHIB). The
Fund may invest in other Eligible Assets not listed without prior notice to Shareholders. Shareholders will be informed of any new Eligible
Assets through the daily website holdings disclosures of the Fund, the Fund’s regulatory reports and/or on the Fund’s website.

Under normal circumstances, the Fund
is expected to hold between five and fifteen (5 – 15) crypto assets; however, the Fund may hold more than fifteen or less than five
crypto assets at any time. The Fund may invest in one or more Index Constituents in excess of or below the weight assigned to such Index
Constituents by the Index, invest in one or more crypto assets that are not Index Constituents, or may not invest in a crypto asset that
is an Index Constituent. The Fund may use one or more of its Eligible Assets to purchase other Eligible Assets, and may engage in trading
of Eligible Assets on both U.S. and non-U.S. crypto trading platforms. However, the Fund will not invest in any crypto asset that is not
an Eligible Asset.

Investment Strategies

The Fund primarily invests in Eligible
Assets. The Sponsor will employ an actively-managed strategy that expresses fundamental views within a quantitative model-based framework
in order to select Eligible Assets in the Fund and allocate portfolio weights relative to the Index within a risk-managed framework. In
deciding which Eligible Assets to invest in, and to what extent, the Sponsor may consider a variety of factors regarding the crypto asset
and its underlying network, such as valuation and liquidity.

The Sponsor’s investment strategy
for identifying investment opportunities uses both “top down” approaches (such as, thematic research, addressable markets,
and sector analysis) and “bottom up” approaches (such as, valuation, fundamental, and quantitative measures). The investment
strategy is based on fundamental analysis and a momentum- and trend-following analysis. The fundamental analysis is used to identify assets
with strong potential for long-term growth and is based on a macroanalysis of factors, including, but not limited to, technology, economics,
and ecosystem. The momentum- and trend-following analysis is based on current market dynamics and investor behavior and is used to identify
assets with strong potential for short-term gains.

The Sponsor’s internal research
and analysis leverages insights from diverse sources, including external research, to develop and refine its investment selections and
identify and take advantage of trends within the crypto assets industry that have ramifications for the crypto assets to be held by the
Fund. The Sponsor will select investments for the Fund that represent the Sponsor’s highest-conviction investment ideas in constructing
the Fund’s portfolio. The Sponsor’s highest-conviction investment ideas are those that it believes present the best risk-reward
opportunities.

The investment process is implemented
using an assessment and rating of each asset on an ongoing basis across multiple factors, such as intrinsic value of crypto assets by
examining their underlying fundamental characteristics, momentum characteristics, and assessing potential for long-term growth and short-term
performance. A quantitative model, which includes the Sponsor’s portfolio analytics and risk controls, is then used to size and
manage positions within the disciplined risk framework.

The Fund primarily holds Eligible Assets.
Under normal circumstances, the Fund may also hold cash, cash equivalents, and stablecoins to cover expenses, buy crypto assets, and allow
for efficient trading. The cash equivalents (1) may not be securities and (2) include, but are not limited to: currency, demand deposits
with banks or other financial institutions, bank money market accounts, time deposits, and CDs with maturities of three months or less.
Stablecoins are like tokenized cash. The Fund may only invest in stablecoins that maintain a fully reserved 1:1 ratio to an underlying
asset, like U.S. Dollars, back up their redemption obligations by a reserve asset, do not pay interest to the holder nor afford the holder
any governance rights, and do not represent any ownership interest in the issuer. For example, the Sponsor may use USDC, which is a stablecoin
issued by Circle, fully reserved by cash and cash equivalents for 1:1 redeemability with U.S. dollars. The Fund may also hold cash, cash
equivalents, and stablecoins as a temporary defensive position, which may be inconsistent with the Fund’s principal investment objectives
and/or strategies or may impact the Fund’s returns. The Fund may use one or more of its Eligible Assets to purchase other Eligible
Assets, and may engage in trading of Eligible Assets on both U.S. and non-U.S. crypto trading platforms. The Fund may assume a temporary
defensive position to respond to adverse market, economic, political, or other conditions, such as to provide flexibility in meeting redemptions,
pay expenses, or manage cash flows. The Fund will not invest in any asset considered a security under the federal securities laws, at
any time.

Incidental Rights, IR
Virtual Currency, Forks, Airdrops, and Similar Events

From time to time, the
Fund may be entitled to or come into possession of rights to acquire, or otherwise establish dominion and control over, any crypto
asset (for avoidance of doubt, other than crypto assets held by the Fund) or other asset or right, which rights are incident to the
Fund’s ownership of crypto assets and arise without any action of the Fund, or of the Sponsor on behalf of the Fund
(Incidental Rights). Additionally, the Fund may be entitled to or come into possession of rights to acquire, or otherwise establish
dominion and control over, any crypto asset (for avoidance of doubt, other than crypto assets held by the Fund) or other asset or
right, acquired by the Fund through the exercise of any Incidental Right (IR Virtual Currency). Such events involving Incidental
Rights and IR Virtual Currencies include a fork in a crypto asset blockchain, an airdrop offered to holders of crypto assets, or
other similar event. A fork occurs when developers of one or more networks underlying the Eligible Assets may suggest changes to the
network and a sufficient number of users and/or miners elect not to adopt the changes, creating a new crypto asset. In an airdrop,
the promoters of a new crypto asset announce to holders of another crypto asset that such holders will be entitled to claim a
certain amount of the new crypto asset for free, based on the fact that they hold such other crypto asset.

With respect to any Incidental Right,
IR Virtual Currency, fork, airdrop, or similar event, the Sponsor shall, in its sole discretion, decide what action the Fund shall take.
Such actions that the Fund may take include to irrevocably abandon, claim, or sell such crypto asset, Incidental Right, or IR Virtual
Currency, so long as such action is consistent with the Fund’s policies and custodial policies, does not adversely affect the status
of the Fund as a partnership for U.S. federal income tax purposes, or is not otherwise prohibited by law. In the event of a fork or airdrop,
the Sponsor will determine which network it believes is the appropriate network for the new crypto asset, and whether the new crypto asset
qualifies as an Eligible Asset for the Fund’s purposes.

Staking