tl;dr
T. Rowe Price, a major asset manager, has filed for a mixed digital asset ETF, signaling growing institutional adoption of cryptocurrencies amid rising regulatory interest.
**T. Rowe Price Joins Crypto ETF Race with New Digital Asset Fund**
T. Rowe Price, one of the world’s largest asset management firms, has taken a significant step into the cryptocurrency space by filing for a mixed digital asset exchange-traded fund (ETF), marking its first foray into crypto. The Baltimore-based company, which oversees $1.77 trillion in assets, submitted its application to the U.S. Securities and Exchange Commission (SEC) for the *T. Rowe Price Active Crypto ETF*, according to a regulatory filing.
The proposed ETF would hold between five and 15 digital assets, including major cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, Dogecoin, Cardano, Avalanche, Shiba Inu, Hedera, Bitcoin Cash, Chainlink, Litecoin, and Polkadot. Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, are expected to have the highest weightings in the fund. The ETF aims to outperform the FTSE Crypto U.S. Listed Index, with flexibility to hold more than 15 or fewer than five assets at any time, as noted in the filing.
This move aligns with a growing trend of traditional financial institutions expanding their digital asset offerings. Firms like Fidelity, VanEck, and ProShares have already proposed ETFs focused on specific cryptocurrencies, such as Solana, while ProShares recently submitted a proposal for a mixed digital coin fund. Over 90 crypto-focused ETF applications are currently under review by the SEC, reflecting heightened interest from both investors and regulators.
The surge in demand for crypto ETFs follows the SEC’s approval of Bitcoin and Ethereum ETFs in January 2024, which have become the most successful ETF launches in the industry’s 32-year history. These funds now manage over $150.3 billion in assets, with Ethereum-focused ETFs amassing $23 billion in assets, largely in the past four months. By offering a diversified crypto ETF, T. Rowe Price aims to provide traditional investors and institutions with a streamlined way to access digital assets, circumventing challenges like storage and tax complexities associated with direct crypto ownership.
While T. Rowe Price has not provided additional details beyond the filing, its entry into the space underscores the shifting landscape of finance, where institutional players are increasingly embracing cryptocurrencies. As the SEC continues to evaluate ETF applications, the approval of products like T. Rowe Price’s could further bridge the gap between traditional markets and the digital asset ecosystem, potentially unlocking new avenues for investor participation in the crypto sector.