T. Rowe Price, a mainstay of investment management, has filed with the Securities and Exchange Commission (SEC) to launch an actively managed crypto exchange-traded fund (ETF) that will provide exposure to multiple digital assets.

This high-profile move arrives during a period marked by regulatory delays, but traditional financial institutions are eager to advance. An increasing number of ETF filings signals the growing urgency and changing attitudes across the industry as legacy firms position themselves for the future of crypto investing.

T. Rowe Price Files to Launch Active Crypto ETF

T. Rowe Price is a legacy asset manager founded in 1937. The firm currently oversees $1.77 trillion in assets. On October 22, it filed a Form S-1 registration with the SEC to launch the T. Rowe Price Active Crypto ETF.

As per the filing, the proposed ETF will hold multiple digital assets, ranging from 5 to 15. The initial ‘Eligible Assets’ list includes: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP (XRP), Cardano (ADA), Avalanche (AVAX), Litecoin (LTC), Polkadot (DOT), Dogecoin (DOGE), Chainlink (LINK), Bitcoin Cash (BCH), Hedera (HBAR), Stellar (XLM), and Shiba Inu (SHIB).

The T. Rowe Price Active Crypto ETF aims to outperform the FTSE Crypto US Listed Index over the long term (generally one year or more).

“The Sponsor will employ an active investment strategy that is intended to try to ‘beat’ the Index. In seeking to outperform the Index, the Fund may not invest in the crypto assets that comprise the Index (Index Constituents) in the same proportions as the Index. In seeking to outperform the Index, the Fund may invest in one or more Index Constituents in excess of or below the weight assigned to such Index Constituents by the Index, invest in one or more crypto assets that are not Index Constituents, or may not invest in one or more crypto assets that are Index Constituents,” the filing reads.

Nate Geraci, President of NovaDius Wealth Management, underlined the strategic logic driving T. Rowe Price’s move. He emphasized that firms can no longer afford to ‘hope crypto goes away’ and are building exposure to avoid missing out.

“This isn’t ‘tradfi co-opting crypto’…You have to think deeper than that. A firm founded in 1937 is now building out the full infrastructure to handle crypto trading & manage a crypto ETF. That has to happen before they move towards tokenizing securities,” Geraci added.

Furthermore, Eric Balchunas, Bloomberg’s senior ETF analyst, suggested that competition among major financial firms to claim their share of the crypto ETF market will continue increasing.

“T Rowe Price just filed for an Active Crypto ETF. They are a Top 5 active manager by assets (mostly mutual funds). Did not expect it but I get it. There’s gonna be land rush for this space too,” he posted.

Over 150 Crypto ETF Filings Await SEC Nod Amid US Government Shutdown

Meanwhile, T. Rowe Price’s submission joins a rising tally of crypto ETF filings. Recently, Balchunas highlighted that 155 crypto ETP filings are awaiting approval from the SEC.

However, crypto ETF approvals are paused due to the ongoing US government shutdown. Traders on Polymarket, a prediction platform, now assign a 63% chance that Congress will resolve the impasse by November 15. At the same time, the odds for later dates are much higher.

US Government Shutdown Ending Odds. Source: Polymarket

If operations resume, market watchers expect the backlog of ETF applications to move forward, potentially bringing in a new capital influx for cryptocurrencies.

“A resolution that soon would be very bullish for crypto, as ETF approvals are expected to roll out right after the shutdown ends,” Bitcoinsensus posted.

Thus, as the market awaits the shutdown’s resolution, anticipation continues to build. Once operations resume, it remains to be seen whether the government will prioritize the review of pending ETF applications or if the industry will face further roadblocks.