T. Rowe Price Files for Crypto ETF Registration
T. Rowe Price (TROW.O) has filed an S-1 registration with the US Securities and Exchange Commission (SEC). The filing is to launch an actively managed Exchange Traded Fund (ETF) linked to multiple digital currencies. This move marks a key step for the firm’s entry into digital assets. It comes despite slower regulatory progress due to the ongoing US government shutdown.
Details on T. Rowe Price’s Crypto ETF
T. Rowe Price is one of the largest asset managers in the US. The company filed for an actively managed cryptocurrency ETF on Wednesday. Nate Geraci, president of The ETF Store, said this is very significant. Founded in 1937, T. Rowe Price manages about $1.8 trillion in assets. It only started offering ETFs in 2020. This filing shows the firm’s serious move into the crypto market.
Geraci said, “Legacy asset managers are quickly trying to figure out how to implement some semblance of a crypto strategy.” Eric Balchunas, Senior ETF Analyst at Bloomberg, shared that there are now 155 crypto ETP filings tracking 35 digital assets. He expects this number to grow beyond 200.
However, the current US government shutdown has delayed the approval of several altcoin ETF applications. These were expected to launch in October. The delay may slow down a key event that could impact crypto market sentiment.
What Is a Crypto ETF?
- An Exchange-Traded Fund (ETF) is an investment fund that tracks the price of assets.
- Crypto ETFs allow investors to gain exposure to cryptocurrencies without owning them directly.
- The first Bitcoin futures ETF was approved by the SEC in October 2021.
- In January 2024, the SEC approved several Bitcoin spot ETFs, opening the market to more investors.
- Crypto ETFs reduce risks and costs compared to holding cryptocurrencies directly.
- However, investors do not have direct ownership of the assets in an ETF.
- ETFs charge fees for active management, which can increase costs.
- Price changes in cryptocurrencies still affect the value of crypto ETFs.
