T. Rowe Price Files Application for New Cryptocurrency ETF Product, Plans to Include Dogecoin and Shiba Inu Token

Major asset management firm T. Rowe Price is advancing an application for a new actively managed ETF that includes multiple cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and Shiba Inu Token. The company recently submitted a revised S-1 registration statement for the “Price Active Crypto ETF” to the U.S. Securities and Exchange Commission (SEC), accelerating efforts to realize a cryptocurrency ETF.

Active Selection of 5-15 Stocks from 15 Cryptocurrencies, Flexible Portfolio Composition

The new crypto ETF targets 15 digital assets: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, Cardano (ADA), Avalanche (AVAX), Litecoin (LTC), Polkadot (DOT), Dogecoin (DOGE), Hedera (HBAR), Bitcoin Cash (BCH), Chainlink (LINK), Stellar Lumens (XLM), Shiba Inu (SHIB), and SUI.

The key feature of the management approach is that it does not always hold all 15 assets. Instead, it uses a quantitative model incorporating fundamental factors, valuation, and market momentum to select and concentrate the portfolio on 5 to 15 tokens during normal times. This active strategy aims to outperform the FTSE US Listed Crypto Index, rather than tracking a single token or passively following a benchmark.

The firm manages approximately $1.8 trillion in assets. This application by a major asset manager has garnered high market expectations and could be a significant step toward establishing mainstream investment products in the crypto market.

Anchorage Digital Bank to Serve as Custodian, Ensuring Digital Asset Security

The revised filing confirms Anchorage Digital Bank N.A. will serve as the custodian for the fund. As a crypto-specialized custodian, Anchorage will handle the safekeeping and security of the digital assets held by the fund. This brings the robust security infrastructure of traditional securities business to the crypto ETF.

Currently, investor subscriptions and redemptions will be cash-based. Investors will not transfer digital assets directly; instead, they will create and redeem ETF shares using cash.

Potential for In-Kind Trading and Future Staking Participation

In the future, the ETF may evolve to support in-kind trading, which is already used by some crypto ETFs. This would allow direct exchange of digital assets, improving efficiency and flexibility in asset management and trading.

Additionally, the fund’s participation in staking is explicitly mentioned as a possibility. Staking involves locking up tokens on certain blockchain networks to support network security and earn rewards. T. Rowe Price states it will monitor risk management, tax treatment, and regulatory developments before considering participation in staking activities.

New ETF by a Major Asset Manager: Market Differentiation and Impact

This application by the 87-year-old T. Rowe Price symbolizes a major entry of a top asset management firm into the crypto market. Unlike the spot Bitcoin ETFs launched in the U.S. in 2024, this product’s active management approach allows for flexible portfolio adjustments based on market conditions.

Approval of this crypto ETF would provide a convenient way for a broad range of investors—from individuals to institutions—to gain exposure to cryptocurrencies within a regulated environment. It could significantly influence the future development of the crypto investment market and shape investor access.