The Securities and Exchange Commission has published a notice in the Federal Register detailing NYSE Arca's proposed rule change to list and trade shares of the T. Rowe Price Active Crypto ETF. Filed on November 6, 2025, and released on November 24, 2025, this initiative seeks approval under NYSE Arca Rule 8.201-E for non-generic commodity-based trust shares. The fund, sponsored by T. Rowe Price Sponsor LLC, aims to provide investors with exposure to a diversified basket of crypto assets while outperforming the FTSE Crypto US Listed Index. This development occurs amid growing interest in crypto-related exchange-traded products, following recent SEC approvals for spot bitcoin and ether ETFs, and could expand access to digital assets through regulated channels. By limiting holdings to strictly defined eligible assets and incorporating surveillance sharing agreements, the proposal addresses concerns about market manipulation and investor protection in the volatile crypto sector.
Background and Fund Structure
The T. Rowe Price Active Crypto ETF is structured as a Delaware statutory trust, with T. Rowe Price Sponsor LLC as the sponsor and CSC Delaware Trust Company as the trustee. The fund operates as an actively managed exchange-traded product, or ETP, designed to hold primarily eligible crypto assets, along with cash, cash equivalents, or stablecoins. Eligible assets must meet one of four criteria set by the sponsor: trading on an Intermarket Surveillance Group member market, underlying a futures contract available on a Commodity Futures Trading Commission-regulated designated contract market for at least six months with a comprehensive surveillance sharing agreement in place, representing at least 40% of the net asset value of an ETF listed on a national securities exchange, or complying with NYSE Arca's generic listing standards for commodity-based trust shares.
As of the filing date, the sponsor identifies several crypto assets as eligible, including bitcoin (BTC), ether (ETH), SOL, XRP, ADA, AVAX, litecoin (LTC), DOT, Dogecoin (DOGE), HBAR, Bitcoin Cash (BCH), LINK, lumen (XLM), and Shiba Inu (SHIB). The fund plans to hold between five and 15 such assets under normal circumstances, though this may vary. It will not invest in assets failing these criteria, ensuring alignment with regulatory safeguards. The fund's assets are custodied separately, with a crypto custodian handling digital holdings and a cash custodian managing fiat equivalents. This setup aims to reduce operational complexities for investors compared to direct crypto ownership.
Investment Objective and Strategy
The fund's primary goal is to outperform the FTSE Crypto US Listed Index over the long term, defined as periods of a year or more. This index includes the top 10 crypto assets by market capitalization that meet eligibility under NYSE Arca's generic standards or serve as underlying assets for SEC-registered ETPs or ETFs. Constituents are weighted by the square root of market capitalization, rebalanced quarterly, and must satisfy minimum capitalization and liquidity thresholds.
In pursuit of this objective, the fund employs an active strategy, potentially allocating to index constituents in different proportions or including non-index eligible assets. Investments are guided by a model-based process considering fundamentals, valuation, and momentum within a risk framework. The fund may trade eligible assets on U.S. and non-U.S. platforms but avoids leverage or inverse performance relative to the index. Staking is permitted for portions of holdings through trusted providers, with rewards treated as income. If staking reduces readily available assets below 85%, the fund must implement liquidity risk policies to prevent dilution of shareholder interests.
Custody, Valuation, and Surveillance Measures
Custody arrangements emphasize security, with the crypto custodian safeguarding private keys against theft or unauthorized use. The sponsor maintains control consistent with spot commodity delivery standards. Net asset value is calculated daily by an administrator using reference rates from third-party vendors, aggregating trade data from approved platforms between 3:00 p.m. and 4:00 p.m. Eastern Time. This methodology, involving volume-weighted medians, is designed to resist manipulation by mitigating outlier prices and large trade impacts.
Surveillance is bolstered by NYSE Arca's agreements with markets trading underlying futures or related ETFs. The proposal references prior SEC approvals for spot bitcoin and ether ETPs, where correlations between spot markets and CME futures enabled effective monitoring. Similarly, eligible assets here tie to CME futures for assets like bitcoin, ether, SOL, and XRP, or to listed ETFs providing significant exposure. Market makers must provide trading information, and firewalls prevent misuse of non-public data.
Creation and Redemption Processes
Shares are created and redeemed in units of 10,000 through authorized participants, who exchange cash only. The fund converts cash to crypto assets via direct trades with counterparties, not involving authorized participants in digital asset handling. This cash-only model simplifies processes while incorporating slippage adjustments to reflect actual transaction costs.
Potential Implications and Perspectives
The proposal could broaden investor access to crypto assets, potentially increasing market liquidity and competition among ETPs. Short-term implications include enhanced price discovery through intraday indicative values updated every 15 seconds and daily net asset value disclosures. Long-term effects might involve greater institutional adoption, though volatility in crypto markets poses risks.
Stakeholders offer varied views. Proponents, including the sponsor, argue that strict eligibility and surveillance align with investor protections, as noted in the filing's emphasis on 'other means' to prevent manipulation beyond traditional surveillance sharing. Critics, potentially including regulatory watchdogs, may highlight ongoing concerns about crypto market fragmentation and wash trading, though the proposal cites SEC precedents addressing similar issues. Without endorsing positions, these perspectives underscore debates on balancing innovation with oversight.
