T Rowe Price Prepares to Launch Crypto ETF with Broad Investment Scope

T. Rowe Price, one of the top asset managers in the world, is taking another step towards entering the digital asset market. In an amended filing with the U.S. Securities and Exchange Commission (SEC), the company revealed its plans for a new crypto ETF that will offer actively managed exposure to various digital assets.

The fund, called Price Active Crypto ETF, will have a wide universe of potential investments, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, ADA, Avalanche (AVAX), Litecoin (LTC), and several other cryptocurrencies. However, the ETF will not hold all of these assets at once, instead maintaining between five and fifteen crypto assets at a time using an active management strategy.

The portfolio will be rebalanced regularly using quantitative models that incorporate fundamentals, valuation, and market momentum, with the goal of outperforming the FTSE US Listed Crypto Index. The fund's custodian will be Anchorage Digital Bank N.A., responsible for safeguarding the digital tokens held by the ETF.

Investors will be able to create or redeem ETF shares using cash rather than transferring cryptocurrency directly. However, the filing notes that the structure could evolve to allow in-kind transactions in the future. Additionally, the fund may participate in staking, a process used by some blockchains where token holders lock up assets to help secure the network in exchange for rewards.