The U.S. Securities and Exchange Commission has cleared the way for a new actively managed crypto ETF. It is a multi-asset ETF filed by T. Rowe Price. It will provide investors with a way to gain exposure to the top cryptocurrencies, such as Bitcoin, Ethereum, XRP, Solana and Shiba Inu.
SEC Greenlights Another Multi-Asset Crypto ETF
On June 12, the SEC approved NYSE Arca’s proposal to list and offer shares of the T. Rowe Price Active Crypto ETF in NYSE Arca’s Commodity Based Trust Shares framework.
The fund has been designed to generate long-term capital growth from investing in a diversified portfolio of crypto assets. The ETF typically will keep between 5 and 15 qualified digital assets, although that quantity might change from time to time.
The SEC filing noted that the currently available assets that are eligible for the fund include Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP (XRP), Cardano (ADA).
Moreover, it’ll also hold Avalanche (AVAX), Litecoin (LTC), Polkadot (DOT), Dogecoin (DOGE), Chainlink (LINK), Stellar (XLM). The other assets include Hedera (HBAR), Bitcoin Cash (BCH), Shiba Inu (SHIB) and Sui (SUI).
Meanwhile, other asset managers also moving forward with their filings on crypto ETFs. For context, BlackRock recently filed the Form 8-A for its Bitcoin Premium Income ETF. Analysts say it typically signals a launch within a week’s time.
How Is It Different From A Spot ETF?
The T. Rowe Price crypto ETF is a managed product, as opposed to a spot ETF that tracks a single asset, which will be benchmarked against the FTSE Crypto US Listed Index. The fund will not be attempting to simply “follow the index” but rather to outperform it with active portfolio management, the filing says.
The proposal is consistent with the Securities Exchange Act, and the SEC added that it contains protections to stop market manipulation and safeguard investors. The exchange will also add more firewall protection and trading halt features as the ETF will be actively managed, the regulator added.
The approval is another significant milestone in the expansion of crypto investment products beyond just standalone Bitcoin, Ethereum or altcoin ETFs. Experts believe that crypto ETFs tracking just one asset offers more risk exposure. However, multi-asset ETFs skin T. Rowe Price’s product minimizes risk due to the diverse portfolio.
On the spot ETF front, SEC also gave a nod to Grayscale’s Hyperliquid staking ETF. It went live for trading in early June.