T. Rowe Price prepares to include dogecoin and shiba inu in its upcoming cryptocurrency ETF.

The revised SEC filing outlines the assets, custody arrangements, and potential staking strategies for the actively managed cryptocurrency fund.

(Cheng Xin/Getty Images)

Key points:

• T. Rowe Price has submitted an amended S-1 for its Price Active Crypto ETF, initially filed in October.
• The updated filing provides information about an actively managed fund aimed at giving investors access to various digital assets, safeguarded by Anchorage Digital Bank.
• The ETF may invest in a fluctuating selection of five to fifteen cryptocurrencies from a comprehensive list that includes bitcoin, ether, solana, and others, employing quantitative models to seek to surpass the FTSE US Listed Crypto Index.

T. Rowe Price has registered to manage a diverse array of digital assets in its new exchange-traded fund (ETF), which encompasses bitcoin, ether, dogecoin, and shiba inu.

The asset management firm, with $1.8 trillion in assets under management, has filed an amended S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), revealing further details regarding its proposed Price Active Crypto ETF, a fund designed to provide investors with actively managed exposure to digital assets.

The revised filing, submitted on Monday, elaborates on the company’s original application from October and specifies the cryptocurrencies the fund may include, along with information on custody, trading framework, and potential staking endeavors.

The document indicates that the ETF could encompass multiple digital assets, including bitcoin BTC$73,470.16, ether (ETH), solana (SOL), XRP (XRP), ADA$0.2876, avalanche (AVAX), LTC$57.24, DOT$1.5707, DOGE$0.1017, hedera (HBAR), BCH$478.91, chainlink LINK$9.9252, stellar lumen (XLM), shiba inu (SHIB), and SUI$1.0590.

Despite the extensive selection, the fund will not maintain all these assets simultaneously. Typically, the ETF intends to hold between five and fifteen crypto assets at any given time, utilizing an active management approach instead of passively tracking a specific token or benchmark. The portfolio will be adjusted using quantitative models that take into account fundamentals, valuation, and market momentum, with an aim to exceed the performance of the FTSE US Listed Crypto Index, as stated in the filing.

The revised filing also affirmed that Anchorage Digital Bank N.A. will act as the custodian of the fund’s crypto assets, responsible for protecting the digital tokens owned by the ETF.

Currently, the fund will implement a cash subscription and redemption model, implying that investors would create or redeem ETF shares with cash instead of transferring cryptocurrency directly. The filing mentions that this structure may adapt to permit in-kind transactions in the future, a model some crypto ETFs utilize to swap shares for the underlying digital assets.

Another significant update in the filing is the potential for the fund to engage in staking, a method used by certain blockchains where token holders lock assets to assist in securing the network in return for rewards.

T. Rowe Price indicated that staking could be considered in the future based on risk factors, tax implications, and regulatory guidance.

This filing represents another advancement for the 87-year-old investment firm, recognized as one of the top 25 asset management companies, as it seeks to enter the digital asset arena.

If authorized, this product would become part of a growing array of crypto investment options aimed at providing investors access to the sector through traditional brokerage platforms.

The fund’s active management strategy could distinguish it from the surge of spot bitcoin ETFs introduced in the U.S. in 2024, allowing managers greater flexibility to adjust holdings as cryptocurrency markets change.