T. Rowe Price, the 87-year-old investment firm managing over $1.8 trillion in assets, has officially entered the digital asset market with a filing to launch an actively managed cryptocurrency exchange-traded fund.
The Baltimore-based asset manager submitted an S-1 registration statement with the U.S. Securities and Exchange Commission to create the T. Rowe Price Active Crypto ETF, the firm’s first product tied to multiple digital assets.
The proposed fund would hold a diversified basket of five to fifteen cryptocurrencies, including Bitcoin, and would allow managers to adjust allocations dynamically rather than simply track an index.
According to the filing, the fund aims to outperform the FTSE Crypto US Listed Index by blending fundamental analysis, valuation metrics and momentum signals to determine which coins to hold and at what weights.
That active approach stands in contrast to spot crypto ETFs that passively track a single index, offering the potential to navigate volatile markets and deliver excess returns, analysts say.
“It’s a surprise to see them as a relatively late entrant, but they’re planning to offer something differentiated to try and break into the space,” said Bryan Armour, an ETF analyst at Morningstar, noting that multi-coin, actively managed crypto ETFs remain uncommon.
The filing also underscores T. Rowe Price’s expanding commitment to digital assets. In 2022, the firm hired former crypto hedge fund executive Blue Macellari as head of digital asset strategy, and this year signalled interest in broadening its product set beyond traditional stocks and bonds.
If approved, the T. Rowe Price Active Crypto ETF would represent a notable vote of confidence from a long-established institutional manager in the mainstreaming of cryptocurrencies.Â
Observers will watch closely for SEC feedback and for how T. Rowe Price balances active management with the operational and regulatory complexities of holding multiple digital assets.
Market participants will monitor the SEC review closely, and investors will assess fees, custody arrangements, and the fund’s risk management framework carefully.