T. Rowe Price on Thursday debuted its first crypto exchange-traded fund, the Active Crypto ETF, giving investors exposure to Bitcoin and other digital assets. The $1.89 trillion asset manager launched what it describes as the first actively managed multi-token spot ETF on the market, trading on NYSE Arca under ticker TKNZ. The product provides exposure primarily to Bitcoin (40.75% weighting) and Ethereum (18.42%), with additional holdings in Solana, XRP, Hyperliquid, Dogecoin, and BNB, following an SEC application filed last October. Blue Macellari, head of digital assets at T. Rowe Price, stated the ETF helps investors "eliminate the guesswork of building a crypto allocation on their own." The launch occurs amid a broader expansion of crypto ETF products following the SEC's January 2024 approval of Bitcoin ETFs from BlackRock, Fidelity, and Grayscale.
T. Rowe Price Filed SEC Application Last October
T. Rowe Price applied to the U.S. Securities and Exchange Commission for the Active Crypto ETF product last October. The firm announced Thursday that this product represents the "first of the firm's lineup" for the digital asset space.
Active Crypto ETF Holds 40.75% Bitcoin Allocation
The TKNZ fund allocates 40.75% to Bitcoin and 18.42% to Ethereum as its primary holdings. Additional assets in the portfolio include Solana, XRP, Hyperliquid, Dogecoin, and BNB. T. Rowe Price, one of the largest U.S. asset managers with $1.89 trillion in assets, positions this as the first actively managed multi-token spot ETF available to investors.
Bloomberg Analyst Notes Bear Market Launch Timing
Bloomberg Intelligence senior research analyst James Seyffart wrote on X Thursday: "Launching during a bear market and I know for a fact this product was years in the making. Legacy asset managers continue to build in the crypto space despite the pullback in prices."
SEC Approved Bitcoin ETFs in January 2024
In January 2024, the SEC approved Bitcoin ETFs by BlackRock, Fidelity, Grayscale and other asset managers after years of denying applications. The funds had the most successful debut in the ETF industry's history and now manage billions in dollars in assets. Ethereum funds followed the same year, and a number of altcoin products are now on the market for U.S. and European investors. Under President Trump's administration, regulators have become more relaxed towards regulating the digital asset space, with many SEC lawsuits and investigations targeting crypto firms scrapped since the Republican took office.
FAQ
What did T. Rowe Price launch on Thursday?
T. Rowe Price launched the Active Crypto ETF on Thursday, trading on NYSE Arca under ticker TKNZ. The fund holds 40.75% Bitcoin, 18.42% Ethereum, and additional allocations to Solana, XRP, Hyperliquid, Dogecoin, and BNB.
When did T. Rowe Price apply to the SEC for this ETF?
T. Rowe Price applied to the U.S. Securities and Exchange Commission for the Active Crypto ETF product last October.
When did the SEC approve Bitcoin ETFs?
The SEC approved Bitcoin ETFs by BlackRock, Fidelity, Grayscale and other asset managers in January 2024 after years of denying applications.
