T. Rowe Price Brings Memecoins Into the Mainstream With Crypto ETF

T. Rowe Price, which oversees roughly $1.9 trillion in assets, said excluding established memecoins solely because of their label would not fit with its active crypto investment strategy.

The asset manager has launched what it calls the industry’s first actively managed spot crypto ETF offering exposure to a basket of digital assets.

The T. Rowe Price Active Crypto ETF (TKNZ) began trading Thursday, giving investors access to multiple cryptocurrencies rather than concentrating on one token. The launch expands the Baltimore-based firm’s growing presence in the digital-asset sector.

Unlike the spot bitcoin and ether ETFs that have led the crypto investment market, TKNZ is built around a diversified portfolio. Its holdings include bitcoin, ether, BNB, XRP, Solana (SOL), Hyperliquid (HYPE), and other digital assets.

The fund’s active-management structure is another major distinction. Instead of following a fixed benchmark, portfolio managers can change allocations based on market developments, research, and risk assessments. T. Rowe Price said the approach is intended to capture shifts in market leadership and momentum as investors move capital between cryptocurrencies.

The product arrives as major asset managers continue expanding beyond single-token crypto funds. BlackRock recently introduced a bitcoin income ETF that seeks to generate returns through options strategies tied to its spot bitcoin ETF, illustrating the increasing variety of crypto investment products.

Active management could provide investors with greater flexibility in a market characterized by sharp price swings and rapidly changing trends. However, actively managed funds typically charge more and must outperform passive alternatives to justify the additional expense.

TKNZ currently carries a 0.75% net management fee through May 2027 under a temporary fee waiver. The annual fee is scheduled to increase to 0.90% once the waiver expires.

Blue Macellari, T. Rowe Price’s head of digital assets, manages the ETF alongside four co-portfolio managers. She has led the firm’s digital-asset strategy since 2022, overseeing research covering cryptocurrencies, blockchain protocols, and related investment products.

The ETF launch follows years of preparation. T. Rowe Price said it developed its own digital-asset trading infrastructure and worked with institutional service providers to establish the technology and operational framework required to manage the fund.