T. Rowe Price submits application for cryptocurrency ETF following XRP and Cardano – CryptoRank
T. Rowe Price, a legacy asset manager with $1.77 trillion in assets, has ventured into the world of cryptocurrencies by filing an S-1 form with the US Securities and Exchange Commission (SEC) to launch its first crypto exchange-traded fund (ETF). The T. Rowe Price Active Crypto ETF aims to track the performance of various digital assets, including Bitcoin, Ethereum, XRP, Dogecoin, Solana, Cardano, and others.
The fund will focus primarily on Bitcoin and Ethereum, with the other assets making up a smaller portion of the portfolio. This move by T. Rowe Price marks its foray into the digital asset space, following the success of previously launched ETFs tracking Bitcoin and Ethereum, which have seen significant investment inflows.
In its filing, T. Rowe Price aims to outperform the FTSE Crypto US Listed ETF, showcasing its confidence in its ability to navigate the crypto market. The number of cryptocurrencies included in the fund will vary based on the asset manager’s discretion, with the fund holding between 5 and 15 tokens at any given time, but with the flexibility to exceed or fall below these limits as needed.
This development is part of a broader trend of traditional financial institutions embracing cryptocurrencies. T. Rowe Price, established in 1937, has traditionally focused on mutual funds but has now recognized the importance of including digital assets in its investment offerings. This shift signals a growing acceptance of cryptocurrencies within the traditional financial system.
Nate Geraci, President of NovaDius Wealth Manager, highlighted the significance of T. Rowe Price’s move into the crypto space, emphasizing that cryptocurrencies are here to stay and could pave the way for further developments such as securities tokenization. This shift reflects a broader trend of convergence between traditional finance and the crypto world.
However, the current US government shutdown has limited the SEC’s ability to process ETF applications, including T. Rowe Price’s filing. Once the government resumes its activities, it is expected that the SEC will approve several altcoin ETFs, including those related to XRP and Cardano.
In conclusion, T. Rowe Price’s entry into the world of crypto ETFs marks a significant milestone in the convergence of traditional finance and digital assets. As the adoption of cryptocurrencies continues to grow, we can expect to see more institutions following suit and incorporating digital assets into their investment offerings.
