According to a Reuters report, global asset management firm T. Rowe Price, with $1.7 trillion in assets under management (AuM), is seeking regulatory approval to launch its first actively managed crypto ETF linked to multiple tokens, marking the firm’s initial entry into the cryptocurrency market space.
While many asset managers have inundated the SEC with applications for ETFs tied to individual cryptocurrencies like Solana (SOL), XRP, Dogecoin (DOGE), among the most anticipated, proposals for new multi-coin products that are actively managed remain uncommon, Armour added.
The managers will target outperformance of the FTSE Crypto US Listed Index, utilizing fundamental, valuation, and momentum factors to guide their asset selections and portfolio allocations, a spokesman told Reuters.
Rowe Price has been closely monitoring developments in the digital assets space and has developed the capability to trade digital assets in recent years, Reuters highlighted.
In 2022, as one of its first steps to prepare for entering the industry, the firm appointed Blue Macellari, a former crypto hedge fund executive, as head of its digital assets strategy.
Todd Rosenbluth, head of research at VettaFi, an ETF market analysis firm, commented, “It’s exciting to see them expand their ETF lineup beyond stock and bond exposure.”
Numerous crypto ETF applications are awaiting SEC approval amid a government shutdown that has significantly reduced the agency’s operational capacity.
As of this writing, Bitcoin has resumed its downward trend, dropping to the lower boundary of its consolidation range at $107,988—a 3.5% decrease from Tuesday’s valuation.
Featured image from DALL-E, chart from TradingView.com
