T. Rowe Price, a $1.8 trillion asset management giant, has taken a notable step into the cryptocurrency space by filing to list an actively managed crypto exchange-traded fund (ETF) in the US. This move surprised many analysts, given T. Rowe’s traditionally conservative approach centered around mutual funds, which recently experienced significant outflows. The S-1 registration filed with the Securities and Exchange Commission (SEC) outlines a fund expected to hold between five and 15 cryptocurrencies that meet the SEC’s generic listing criteria. Eligible assets include major coins such as Bitcoin, Ether, Solana, and XRP, among others.
Nate Geraci, President of NovaDius Wealth Management, described the filing as coming from “left field,” highlighting that established asset managers like T. Rowe are now eager to seize opportunities in the evolving crypto ETF sector. Bloomberg ETF analyst Eric Balchunas echoed this sentiment, calling the filing a “SEMI-SHOCK,” noting that T. Rowe has predominantly focused on mutual funds throughout its 87-year history. He added, “There’s gonna be a land rush for this space too.”
The proposed fund aims to outperform the FTSE Crypto US Listed Index by utilizing a weighting strategy based on fundamentals, valuation, and momentum rather than solely market capitalization. The extensive list of potential holdings includes Cardano, Avalanche, Litecoin, Dogecoin, Hedera, Bitcoin Cash, Chainlink, Stellar, and Shiba Inu.
Unlike many single-coin ETF applications currently pending SEC approval, T. Rowe’s Active Crypto ETF represents a more diversified and actively managed approach. However, progress on crypto ETF approvals has been delayed due to the ongoing 22-day US government shutdown, with indications that the impasse may soon end.
T. Rowe’s evolving stance on crypto marks a significant shift from its earlier cautious outlook. Over four years ago, then-CEO William Stromberg acknowledged crypto was in its “early days” but suggested it would take years to fully mature. This recent filing demonstrates the firm’s readiness to engage more directly with the crypto asset class.
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