T. Rowe Price, which oversees $1.9 trillion in assets, said excluding established memecoins purely because of their classification would conflict with its active investment philosophy in crypto.
The asset manager has introduced what it describes as the first actively managed spot ETF offering exposure to multiple cryptocurrencies.
The T. Rowe Price Active Crypto ETF (TKNZ) began trading Thursday, giving investors access to a diversified portfolio of digital assets instead of focusing on one token. The product marks a significant expansion of the Baltimore-based firm’s growing digital-asset business.
Unlike the spot bitcoin and ether ETFs that have dominated the crypto fund market, TKNZ invests in a wider mix of cryptocurrencies. Its portfolio includes bitcoin, ether, BNB, XRP, Solana (SOL), Hyperliquid (HYPE), and other digital assets.
TKNZ is also different from most crypto funds because it is actively managed. Rather than tracking a set index, its managers can adjust the portfolio based on market conditions, research, and risk analysis. T. Rowe Price said the strategy is designed to respond to shifts in market leadership and momentum as investors rotate capital across different cryptocurrencies.
The launch comes as large asset managers broaden their digital-asset offerings beyond traditional single-token funds. BlackRock, for instance, recently launched a bitcoin income ETF that uses options strategies tied to its spot bitcoin fund, showing how crypto investment products are becoming increasingly specialized.
Active management could help investors deal with crypto markets that are highly volatile and prone to rapid changes in trends. Critics, however, point out that actively managed funds often have higher fees and must deliver stronger performance than passive alternatives to make those costs worthwhile.
TKNZ has a 0.75% net management fee through May 2027 under a temporary waiver. After the waiver ends, the annual fee is expected to rise to 0.90%.
Blue Macellari, T. Rowe Price’s head of digital assets, leads the fund alongside four co-portfolio managers. She has overseen the firm’s digital-asset strategy since 2022, including research covering cryptocurrencies, blockchain networks, and crypto-focused investment products.
The fund’s debut follows years of groundwork. T. Rowe Price said it developed its own infrastructure for trading digital assets and partnered with institutional providers to establish the operational systems required to launch and manage a crypto ETF.
