Global traditional asset management firm T. Rowe Price has filed its first crypto exchange-traded fund (ETF), aiming to invest in a “diversified basket of commodity crypto assets.”
The 87-year-old mutual-fund giant filed an S-1 form with the U.S. SEC on Wednesday to launch the T. Rowe Price Active Crypto ETF.
The actively managed ETF aims to outperform the FTSE Crypto US Listed Index and will use valuation and momentum factors to determine which assets to hold, a spokesperson told Reuters.
The move marks T. Rowe Price’s first foray into the crypto fund space and a notable shift for a company that manages $1.8 trillion in assets.
Eric Balchunas, a senior ETF analyst at Bloomberg, described the move as a “semi-shock,” underscoring its unexpected yet impactful entry.
“Did not expect it but I get it. There’s gonna be land rush for this space too,” he wrote on X.
Bryan Armour, an ETF analyst at Morningstar, said that the filing comes as a “surprise” nearly two years after the US SEC’s first spot Bitcoin ETF approval. Besides, this is a rare kind of proposal for new multi-coin products, he added.
“It’s a surprise to see them as a relatively late entrant, but they’re planning to offer something differentiated to try and break into the space,” he told Reuters.
Per the SEC filing, the multi-crypto ETF would track prices of 15 digital assets, including Bitcoin, Ethereum, XRP, Solana, Cardano, Litecoin and more. The fund may invest in other eligible assets not mentioned, the S1 prospectus read.
“Under normal circumstances, the Fund is expected to hold between five and fifteen crypto assets; however, the Fund may hold more or less at any time.”
T. Rowe Price joins a growing list of asset managers looking to list ETFs based on crypto and altcoins. Per Eric Balchunas, there are 155 crypto ETF filings tracking 35 different digital assets so far.
“Could easily end up seeing over 200 hit mkt in next 12 months,” he wrote.
However, the flurry of fund proposals to track the price of crypto and altcoins comes amid a government shutdown that has reduced the SEC’s staffing, stalling crypto ETF approvals.
