TLDR
- T. Rowe Price, managing $1.77 trillion in assets, filed with the SEC to launch its first cryptocurrency ETF on Wednesday
- The Active Crypto ETF will hold 5-15 digital assets including Bitcoin, Ethereum, Solana, and XRP, weighted by fundamentals rather than market cap
- Analysts expressed surprise as the 87-year-old firm has historically focused on traditional mutual funds and showed caution toward crypto in 2021
- The fund aims to beat the FTSE Crypto US Listed Index through active management strategies
- Processing is delayed by the 23-day government shutdown that has halted all SEC crypto ETF application reviews
T. Rowe Price filed paperwork with the Securities and Exchange Commission on Wednesday to launch its first cryptocurrency exchange-traded fund. The move marks a shift for the asset management firm that oversees $1.77 trillion and has operated since 1937.
The T. Rowe Price Active Crypto ETF will invest in 5 to 15 digital currencies. The filing lists Bitcoin, Ethereum, Solana, XRP, Cardano, Avalanche, Litecoin, Polkadot, Dogecoin, HBAR, Bitcoin Cash, Chainlink, Stellar, and Shiba Inu as eligible assets. Each cryptocurrency must meet SEC generic listing standards.
Bloomberg ETF analyst Eric Balchunas described the announcement as a “SEMI-SHOCK.” He noted T. Rowe Price has concentrated on mutual funds throughout its history. Nate Geraci from NovaDius Wealth Management called it a “left field” decision.
Active Management Strategy Sets Fund Apart
The proposed ETF uses an active management approach. T. Rowe Price will weight holdings based on fundamentals, valuation, and momentum instead of market capitalization alone. The fund targets returns above the FTSE Crypto US Listed Index over periods of one year or more.
This strategy differs from passive index funds. The portfolio managers will adjust positions based on their analysis. The FTSE Crypto US Listed Index tracks the 10 largest U.S.-listed crypto assets by market value.
Geraci stated that T. Rowe Price must now build infrastructure for crypto trading. The firm needs systems to custody digital assets and manage the ETF operations. He suggested legacy asset managers are working to add crypto capabilities.
Traditional Firms Join Crypto ETF Wave
T. Rowe Price enters a market where BlackRock and Fidelity already operate successful crypto ETFs. These firms launched products earlier and captured initial demand. The filing comes years after the first crypto ETF applications reached the SEC.
In 2021, former T. Rowe Price CEO William Stromberg called cryptocurrency “early days.” He predicted development would take years. The company waited over four years before submitting its application.
The SEC recently approved new listing standards that reduce launch times for crypto ETFs. Dozens of applications have followed. Osprey Funds filed for a spot Solana ETF with staking on the same day as T. Rowe Price.
Government Shutdown Delays Review Process
The federal government shutdown has stopped SEC processing of crypto applications. The shutdown started October 1 and entered its 23rd day. The SEC operates with minimal staff during the closure.
No crypto ETF applications will advance until normal operations resume. Kevin Hassett, an economic adviser to President Trump, said Monday the shutdown should end this week. T. Rowe Price’s filing joins others waiting for review.
The asset manager’s application includes single-coin ETFs for Litecoin, Solana, and XRP. All submissions remain on hold. The SEC cannot provide timelines until the government reopens and staff return to work.
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