T. Rowe Price Enters Crypto Market, Files for Multi-Asset ETF To Track Bitcoin, Ethereum, and Other Altcoins

T. Rowe Price, one of the biggest asset management firms, has entered the crypto space with its first filing for a mixed digital asset exchange-traded fund (ETF). The filing shows that the T. Rowe Price Active Crypto ETF would hold between 5 and 15 digital assets.

T. Rowe Price Enters Crypto Space With Multi-Asset Crypto ETF

On Wednesday, October 22, the asset management giant T. Rowe Price applied for its first actively managed crypto ETF. The Baltimore-based asset manager that controls $1.77 trillion filed for an ETF with the United States Securities and Exchange Commission (SEC) to hold 5-15 digital assets.

The S-1 prospectus stated that the T. Rowe Price Active Crypto ETF might potentially contain Bitcoin, Ethereum, XRP, Solana, Dogecoin, Cardano, Avalanche, Shiba Inu, Hedera, Bitcoin Cash, Chainlink, Litecoin, and Polkadot.

Bitcoin and Ethereum will have the highest weights on this multi-asset crypto ETF, with other digital assets comprising a smaller percentage.

T. Rowe Price Adopts New Strategy for Its Crypto ETF

While T. Rowe Price joins an extensive list of traditional finance firms launching a crypto ETF, it is taking a unique approach with its multi-asset crypto ETF. Unlike most spot ETFs that track just one index, T. Rowe Price is taking an active approach that will allow the firm to adjust positions dynamically, shifting between coins based on market conditions.

In the filing, T. Rowe Price explains that the fund may adjust the holdings of each crypto based on valuation and momentum models. In the future, the fund may also include other eligible cryptocurrencies as market dynamics shift. This will give the multi-asset ETF more flexibility to navigate the volatile crypto market and potentially outperform standard benchmarks.

While 5 to 15 digital assets is the benchmark for the T. Rowe Price Active Crypto ETF, the filing states that “the Fund may hold more than fifteen or less than five crypto assets at any time.” The asset manager also added that the fund aims to outperform the FTSE Crypto U.S. Listed Index.

So, while T. Rowe Price may be late to the crypto ETF space, its unique approach could help the legacy asset manager break into the space. T. Rowe Price is not just showing interest in the crypto space.

In 2022, it employed former crypto hedge fund executive Blue Macellari to head its digital asset strategy department. Earlier this year, the asset manager also hinted that it could expand beyond stocks and bonds soon.

TradFi Interest in Crypto ETFs is At An All-Time High

Reacting to the filing from T. Rowe Price, ETF analyst Eric Balchunas said he didn’t expect it but understands the application because “There’s gonna be land rush for this space too.” 

Currently, there are over 150 other crypto ETF filings awaiting SEC approval, including new products from VanEck, BlackRock, ProShares, and Fidelity. This highlights the rapidly growing interest in crypto and confirms that digital assets will play a huge role in the future of finance.