T. Rowe Price launched its actively managed cryptocurrency ETF, the T. Rowe Price Active Crypto ETF (ticker: TKNZ), on NYSE Arca on July 16, according to a company announcement. The fund is described by T. Rowe Price as the first actively managed multi-token spot ETP offered in the United States, and it marks the firm's first exchange-traded product providing exposure to digital assets.
Fund Strategy and Holdings
TKNZ seeks long-term capital growth through diversified exposure to multiple cryptocurrencies, without using derivatives or leverage. The fund selects assets from a list of eligible cryptocurrencies, which T. Rowe Price says may include Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (SOL), and Hyperliquid (HYPE), among others. The fund may also hold cash, cash equivalents, or the USDC stablecoin for purposes such as paying expenses, purchasing crypto, or facilitating efficient trading.
According to SEC filings, TKNZ typically holds between five and 15 crypto assets, though the number may vary above or below that range depending on market conditions and the manager's investment decisions. The portfolio is managed by a T. Rowe Price team that analyzes each asset's fundamentals, valuation levels, and price momentum, adjusting exposure based on current market trends and investor behavior.
Structure and Custody
TKNZ is organized as a Delaware statutory trust, not as a registered investment company under the Investment Company Act of 1940. This means it is not subject to the same regulatory requirements and investor protections that apply to traditional registered mutual funds or ETFs. Custody of the fund's crypto assets and stablecoins is handled by Anchorage Digital Bank, N.A., while cash and other non-crypto assets are held by State Street Bank and Trust Company.