NYSE Arca Files for SEC Approval to List T.Rowe Price Active Crypto ETF

NYSE Arca has filed with the SEC  for approval to list the T. Rowe Price Active Crypto ETF, which will trade on the exchange and manage popular cryptocurrencies such as Bitcoin, Ethereum, XRP, Dogecoin, and Shiba Inu.

The proposed fund won’t follow a set index. Instead, it will actively adjust which cryptocurrencies it holds based on market conditions, similar to Franklin Templeton’s ETF, which included XRP, Solana, and Dogecoin.

The T. Rowe Price ETF is designed to respond quickly to market changes. Its Net Asset Value (NAV) will be calculated using a reference-rate system that averages prices from major crypto trading platforms. The fund’s administrator watches for unusual prices and notifies the sponsor when necessary.

The filing comes after the NYSE approved Grayscale ETFs that include Dogecoin and XRP, which increased interest from large investors. Additionally, the exchange approved Bitwise’s  Dogecoin ETF, showing continued support for crypto products.

T. Rowe Price Active Crypto ETF Outlines Safety and Risk Measures

The ETF will use a standard system that allows approved companies to buy or sell crypto or cash depending on market conditions, and it has clear rules for safely storing the crypto. 

A regulated custodian will safely store the ETF’s crypto assets offline, using policies and procedures to protect against theft, loss, or unauthorized use of private keys, thereby reducing operational risks.

The fund will also have written policies to manage liquidity risk, ensuring it can meet investor redemption requests. It can use stablecoins like USDC for liquidity when needed and monitors its investment strategy, cash, and funding sources to manage risk under both normal and stressed conditions.

According to NYSE Arca, these measures will improve market monitoring, manage risks, and increase transparency, thus enabling the crypto ETF to operate more safely and reliably.