T. Rowe Price, one of the most traditionally conservative trillion-dollar asset managers, has caught analysts off guard by filing to launch an actively managed crypto exchange-traded fund (ETF) in the U.S.
The firm’s S-1 registration for an Active Crypto ETF marks a potential shift away from its core mutual fund offerings — a segment that has seen tens of billions of dollars in outflows over the past month.
According to the filing submitted to the Securities and Exchange Commission on Wednesday, the fund plans to hold between five and fifteen cryptocurrencies that meet the SEC’s generic listing standards, including Bitcoin, Ether, Solana, and XRP.
Nate Geraci, president of NovaDius Wealth Management, called the filing “out of left field,” suggesting that legacy asset managers like T. Rowe—who missed the first wave of crypto ETFs—are now scrambling to carve out their place in the market.
Bloomberg ETF analyst Eric Balchunas echoed that sentiment, describing the move as a “SEMI-SHOCK.” He noted that T. Rowe, a nearly $1.8 trillion asset manager, has spent its 87-year history primarily focused on mutual funds.
“Did not expect it but I get it. There’s gonna be land rush for this space too.”
Weighting of Assets Won’t Rely Solely on Market Size
T. Rowe’s proposed Active Crypto ETF aims to outperform the FTSE Crypto US Listed Index, according to its filing. Rather than basing allocations purely on market capitalization, the fund will determine weightings using a mix of fundamentals, valuation, and momentum.
Eligible cryptocurrencies for inclusion include Cardano, Avalanche, Litecoin, Dogecoin, Hedera, Bitcoin Cash, Chainlink, Stellar, and Shiba Inu, alongside the larger names like Bitcoin, Ether, Solana, and XRP.
The fund stands apart from the wave of single-asset ETF applications currently awaiting SEC approval. However, progress on those filings — including ones for LTC, SOL, and XRP — has been stalled due to the ongoing U.S. government shutdown, now stretching into its 22nd day.
White House economic adviser Kevin Hassett said Monday that the shutdown is “likely to end sometime this week.”
T. Rowe Shrugged Off Crypto in 2021, But Never Fully Closed the Door
Back in 2021, then-CEO William Stromberg called crypto “still in its early days” when asked whether T. Rowe planned to invest in digital assets.
“It really, truly is early, early days here,” Stromberg said at the time. “I would expect this to move at a good pace but take years to really unfold.”
