Introducing TKNZ—The T. Rowe Price Active Crypto ETF

With growing interest in digital assets and a broader shift in the evolution of crypto beyond single-token ETPs and passive index-based strategies, we have launched the T. Rowe Price Active Crypto ETF (TKNZ).

— First actively managed spot multi-token ETP available in the U.S.

— Simplifies access to crypto’s growth and diversification potential without the complexity and risk of direct ownership of the cryptocurrencies themselves

— Professional research and active management in an asset class where expertise matters most

— Unlike passive, single-token funds, TKNZ holds a curated selection of crypto assets, spanning established tokens and momentum-driven opportunities

— Navigates custody, trading, and rebalancing complexities on investors’ behalf

The T. Rowe Price Active Crypto ETF is not an investment company registered under the Investment Company Act of 1940 and therefore is not subject to the same regulatory requirements as mutual funds or ETFs registered under the Investment Company Act of 1940. The Trust is not a commodity pool for purposes of the Commodity Exchange Act. Before making an investment decision, you should carefully consider the risk factors and other information included in the prospectus.

Crypto is an asset class, not a single instrument

Crypto has often been assessed using frameworks better suited to traditional asset classes. When treated as a single item, it is typically analyzed through price history and volatility alone. A more useful approach is to treat crypto as an ecosystem of competing networks built on a common technological foundation, known as blockchain.

At its simplest, blockchain is an operational technology for coordinating activity across

decentralized networks without a central authority. Crypto tokens provide incentives that help networks run (for example, rewarding validation, computing power, or infrastructure). Owning a token can provide exposure to the economic activity that develops on that network.

This matters as it shifts the focus from short-term price movements and toward economic function. Crypto is not merely a collection of speculative instruments; it is an attempt to build a new form of digital infrastructure. As with many early-stage technologies, progress has been uneven—

Active management is particularly relevant in this context. Crypto markets trade continuously, evolve rapidly and demand analysis that spans both technology and finance. Assessing networks requires judgment—about security, decentralization, programmability, and how value accrues to token holders. For most investors, building and maintaining such exposure independently would be impractical. And while passively managed index-based strategies may help with diversification, they typically lack the flexibility necessary required in a rapidly evolving asset class.

Only recently has the crypto market become sufficiently broad, liquid and institutionally accessible to support an actively managed multi-token ETP. The launch of the T. Rowe Price Active Crypto ETF reflects a point of transition.

Asset allocation considerations

From a portfolio perspective, crypto behaves like a high-growth, high-volatility asset and may experience sharp drawdowns. Returns are largely driven by adoption and network effects, placing crypto closer to equities than fixed income.

This has implications for how crypto is funded within portfolios. Funding crypto from defensive assets such as bonds would materially distort overall risk.

In practice, investors typically source exposure from equities or from a growth-oriented alternatives allocation, where the risk profile is more comparable.

Position sizing is therefore critical. For many investors, contribution-to-risk is more informative than return expectations. Small allocations—often 1 to 4%—can influence outcomes without dominating portfolio risk. For example, in Figure 2 we illustrate hypothetical portfolios of equities (represented by the Russell 3000 Index), bonds (represented by the SPAB) and digital assets (represented by the S&P Bitcoin PR as Bitcoin has the longest track record and we do not yet have robust multi-token index data). A 2.5% allocation to digital assets would represent 7% of the overall risk (calculated by the 5-year standard deviation) of the portfolio.

It is also true that relatively small allocations to crypto can make a meaningful contribution to overall portfolio returns. Using data from the beginning of 2014 to the end of 2025, the first table in Figure 3 shows the annualized returns of five model portfolios with various sized allocations to Bitcoin over one, three, five and ten years. The second table breaks down the contributions to annualized returns from Bitcoin, equities (represented by the Russell 3000 Index) and bonds (represented by the Bloomberg U.S. Aggregate Index) over the five-year period.

...investors typically source exposure from equities or from a growth-oriented alternatives allocation....

– Thomas Casperite
Head of Portfolio
Construction Specialists

For most investors, crypto functions best as a satellite allocation rather than a core holding. The emphasis is on deliberate sizing, clear expectations and an understanding that diversification benefits must be weighed against the asset class’s inherent volatility.

From debate to discipline

Regulated access has changed how investors engage with crypto. What was once a niche and operationally complex market can now be evaluated alongside other high-risk, high-growth assets within established portfolio frameworks. Access does not simplify the asset class—but it makes disciplined implementation more feasible.

Greater accessibility brings both opportunity and responsibility.

Crypto remains volatile, technologically complex and subject to rapid change. Wider access does not eliminate these risks, nor does it make crypto appropriate for every investor. The existence of an investment vehicle is not, in itself, an argument for allocation.

What has changed is the nature of the conversation. Crypto can now be discussed less in ideological terms and more through the lenses of risk, diversification, governance and portfolio fit. For investors willing to engage with that discipline, the asset class has moved from the margins of investability to a point where it can be assessed with greater structure—and fewer distractions. In this context, the value lies not simply in access, but in how exposure is constructed—through diversification, active evaluation and governance embedded within a broader investment platform.

T. Rowe Price identifies and actively invests in opportunities to help people thrive in an evolving world, bringing our dynamic perspective and meaningful partnership to clients so they can feel more confident.