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: 2026-03-16
Accession Number: 0001999371-26-005896
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2089855/000199937126005896/active-s1a_031626.htm

Chunk 44 of 62
Word Count: 1378
Character Count: 9225

Document Content:

is lower than the price used in calculating the NAV, the Authorized Participant pays the Variable Fee. The calculation of the Total Cash Amount necessary for the redemption of a Creation Unit changes from day to day. Each day that the Exchange is open, the computation is made by the Administrator as promptly as practicable after 4:00 p.m. ET. See “Calculating NAV” section. The Administrator intends to make available on each Business Day before the open of business, the Basket for that day, which Authorized Participants may use as guidance regarding the Estimated Cash Amount for redemption orders. On-Chain Transaction Costs and Settlement Delays Transfers of crypto assets out of the Fund’s Vault Balance are “on-chain” transactions recorded on the relevant blockchain. On-chain transaction fees for redemptions are paid by the Crypto Trading Counterparty and are not borne directly by the Fund or its Shareholders. Suspension and Rejection of Orders

Creations and redemptions
may be suspended for any reason and at any time, including (1) during any period in which regular trading on the Exchange
is suspended or restricted or the Exchange is closed (other than scheduled holiday or weekend closings), or (2) when the Sponsor
or Distributor determines that creations or redemptions are not reasonably practicable, including due to issues with the delivery,
disposal or evaluation of the crypto assets, service provider disruption, acts of God, civil disturbance, government prohibition,
war, terrorism, technical failures, network disruptions, cybersecurity breaches, or similar event. The Sponsor or Distributor shall
reject any purchase order or redemption order that is not in proper form, and the Sponsor or Distributor may reject any order for
any reason. If the Sponsor or the Distributor suspend redemptions, Shareholders will be notified in a prospectus supplement or
a current report on Form 8-K. Suspension of the creation or redemption of Shares could negatively impact the Shares’ liquidity
and/or cause the Shares to trade at premiums and discounts, and otherwise have a negative impact on the value of the Shares.

In-Kind Creation and Redemption
of Shares

In the future, the Fund
may also permit Authorized Participants (or third parties for which the Authorized Participant is acting on behalf) to create and
redeem Shares via in-kind transactions.

For an in-kind creation
order, the Sponsor will acknowledge the purchase order and the date of acknowledgement will determine the specified quantity of
crypto assets and cash, as determined by the Fund, that the Authorized Participant needs to deposit. For settlement of an in-kind
creation order, the Fund delivers Shares to the Authorized Participant in exchange for the specified crypto assets and cash, as
determined by the Fund, received from the Authorized Participant.

For an in-kind redemption
order, the Sponsor will acknowledge the redemption order and the date of acknowledgement will determine the specified crypto asset
and cash portfolio, as determined by the Fund, that the Authorized Participant expects to receive in exchange for the Shares to
be delivered to the Fund. For settlement of an in-kind redemption order, the Fund delivers the crypto asset and cash portfolio,
as determined by the Fund, to the Authorized Participant in exchange for Shares received from the Authorized Participant.

Although the SEC provided
a regulatory pathway to permit certain in-kind creations and redemptions, it is not clear whether and how market participants will
adjust their activities to account for the new orders. There can be no assurance that Authorized Participants (or third parties
for which the Authorized Participant is acting on behalf) would be permitted to create or redeem Shares via in-kind transactions
with the Fund in the future. If or when the Fund permits in-kind creations and redemptions, Shareholders will be notified in a
prospectus supplement, the Fund’s periodic reports, or a current report on Form 8-K.

Crypto Trading Counterparties

The Sponsor and the Fund
are solely responsible for selecting the Crypto Trading Counterparties to deliver or receive crypto assets. The Fund has reached
agreements in principle and intends to execute definitive formal agreements with the following Crypto Trading Counterparties: [
] and such agreements will be filed as exhibits to the registration statement. Additional Crypto Trading Counterparties may be
engaged at the Sponsor’s discretion based on the Fund’s operational and liquidity needs. If the Sponsor engages any
additional Crypto Trading Counterparties, Shareholders will be notified of such additions in a prospectus supplement or the Fund’s
periodic reports. The material terms of these agreements, which may be updated from time to time, are described in the section,
“Key Service Providers – Crypto Trading Counterparties.”

Except for serving as service
providers to other products affiliated with or controlled by affiliates of the Sponsor, the Crypto Trading Counterparties are independent
entities and are not affiliated with the Fund or the Sponsor. It is possible that a Crypto Trading Counterparty may on any given
day be or become considered an affiliate of the Fund if it acquired Shares in an amount that would cause it to become considered
an affiliate of the Fund, as the Shares are publicly traded.

A Crypto Trading Counterparty
may be an affiliate of an Authorized Participant. Further, the Crypto Trading Counterparties will not be acting as an agent of
the Authorized Participant with respect to the delivery or receipt of the crypto assets to the Fund or acting at the direction
of the Authorized Participant.

In designating a Crypto Trading
Counterparty, the Sponsor and the Fund evaluate and select service providers based on a defined set of criteria, as established
in its internal compliance policies, including: (i) institutional-grade operational and compliance frameworks; (ii) demonstrated
financial stability and creditworthiness; (iii) proven track record in handling crypto asset transactions with sufficient liquidity
and competitive pricing; and (iv) robust cybersecurity measures and adherence to regulatory standards.

The Sponsor and its affiliates
have adopted and implemented policies and procedures that are designed to comply with applicable anti-money laundering laws and
sanctions laws and regulations, including applicable KYC laws and regulations. The Sponsor and the Fund will only interact with
Crypto Trading Counterparties with respect to whom the Sponsor or its affiliates have engaged in a due diligence process to ensure
a thorough KYC process.

The Crypto Trading Counterparties
will execute transactions for the Fund’s purchase and sale of crypto assets. [They are required to adhere to specific service-level
standards to ensure timely and accurate execution of transactions. These standards include meeting settlement deadlines, maintaining
transparency in pricing, and providing ongoing operational support. While the Crypto Trading Counterparties are expected to facilitate
transactions for the Fund, there are no contractual obligations requiring their participation in every creation or redemption event.
The Sponsor retains the discretion to trade with other third-party Crypto Trading Counterparties as necessary.] See “Key
Service Providers – Crypto Trading Counterparties” for additional information about the Crypto Trading Counterparties.

Active Trading

As an actively-managed product,
the Sponsor’s portfolio management team determines target allocations for each Eligible Asset based on the Fund’s investment
strategy and the Sponsor executes trades through Crypto Counterparties. The Fund may, at any time, engage in purchases or sales
of Eligible Assets to adjust portfolio weights, including portfolio trades unrelated to primary market transactions. In this scenario,
the Fund will use its Crypto Trading Counterparties but such orders will be placed separately from the purchases or sales of assets
attributable to Creation and Redemption. Active trades will settle on T+1.

CUSTODY
OF Fund ASSETS

The Fund’s investment
strategy consists primarily of direct investments in crypto assets, commonly referred to as “spot” investments. The
Fund’s crypto assets and stablecoins are held by the Crypto Custodian on behalf of the Fund.

The crypto assets and stablecoins
exist and are recorded on cryptographically secured distributed ledgers or any similar technology, which serves as the decentralized
transaction ledger for the Eligible Asset Networks. The Fund’s assets with the Crypto Custodian are held in segregated accounts
on the respective blockchain, commonly referred to as “wallets,” and are therefore not commingled with corporate or
other customer assets. All transactions are recorded on the blockchain, ensuring the verification of each asset’s location
in specific digital wallets.

The responsibility for safekeeping
the crypto assets and stablecoins owned by the Fund lies with the Crypto Custodian. The Crypto Custodian safeguards the private
key materials for the Fund’s crypto assets via offline and air-gapped cold storage, hardware security modules, and whitelisting.