Why trillion-dollar asset manager T. Rowe Price put memecoins in its crypto ETF

When $1.9 trillion asset manager T. Rowe Price launched the industry's first actively managed multi-token spot crypto exchange-traded fund (ETF) in July, investors expected to see familiar names like bitcoin BTC $64,983.60, ether ETH $1,919.61 and solana (SOL) in the portfolio. What surprised many was another category of holdings: memecoins.

For Blue Macellari, T. Rowe Price's head of digital assets and lead portfolio manager for the T. Rowe Price Active Crypto ETF (TKNZ), the decision wasn't about chasing internet hype. It was about building what she described as a complete representation of the crypto market.

Macellari said active management means judging each eligible token on its investment merits, not dismissing it because of its reputation. If an established memecoin has strong momentum or could improve the portfolio, she said, excluding it on principle could leave investors on the sidelines.

"We wanted true active management," she said. "I'm not going to stand on principle and say, 'I'm going to be an intellectual snob,' and if a memecoin performs, my investors aren't going to participate."

The Baltimore-based asset manager launched TKNZ as the industry's first actively managed multi-token spot crypto ETF. Unlike traditional spot bitcoin or ether ETFs, the fund gives managers discretion to adjust holdings across a basket of cryptocurrencies based on research, market conditions and risk management. It currently carries a 0.75% management fee under a temporary fee waiver through May 2027.

For many investors, memecoins remain synonymous with speculation. Macellari argued that view overlooks the role established memecoins play within blockchain ecosystems.

"These are established memecoins," she said. "These are tokens that have been around for years and are among the largest crypto assets by market capitalization."

The ETF so far only lists one memecoin, dogecoin DOGE $0.07042, as part of its rotation, which currently makes up 1.26% of the fund. The majority, roughly 60% of the fund is in BTC and ETH with the third largest allocation being Binance Coin BNB $595.73.

Beyond that, Macellari believes memecoin trading provides valuable information about the health of blockchain networks.

"When we look at a chain that has had a memecoin season, it's the closest we can get to seeing a true stress test of a network," she said. "To support that kind of activity, a chain has to deliver near-instant settlement, low transaction costs and remain reliable even during periods of congestion."

That testing has implications beyond speculative trading. As stablecoins move further into mainstream finance, networks will need to handle everything from multi-million-dollar transfers to everyday consumer payments.

"It needs to be cost-effective to send $100 million in stablecoins," Macellari said. "But it also needs to be cost-effective to send $3."

The fund's active approach also reflects T. Rowe Price's broader investment philosophy. Unlike many ETF issuers that simply track market-cap-weighted indexes, the firm believes crypto requires active security selection.

"We think good judgment and good decision making and active management probably matters more in crypto than any other asset class," Macellari said.

Rather than simply buying the largest cryptocurrencies, the team evaluates assets using three layers of analysis: blockchain technology and token economics, ecosystem growth and adoption, and market momentum.

"You can be right on the fundamentals," she said. "But if crypto Twitter doesn't see it or doesn't agree with you, you kind of stand in their way at your peril."

Building beyond one ETF

Macellari says TKNZ was designed as a "grow-with-me" product that can expand as the regulatory landscape evolves. The ETF currently invests in between five and 15 cryptocurrencies, but its eligible universe is expected to grow as additional assets meet the Securities and Exchange Commission (SEC) generic listing standards.

Those listing standards, finalized last year, were one of the key reasons T. Rowe Price waited until now to launch.

"Up until the SEC put out the generic listing standards, you didn't have the tools to make a multi-token ETF where the investable universe could expand over time," she said.

Looking ahead, Macellari expects the crypto ETF market to become increasingly specialized. Rather than a handful of broad-market products, she envisions funds focused on large-cap cryptocurrencies, emerging digital assets and individual sectors.

"I think we'll start to see differentiation," she said. "You could have large-cap blue-chip crypto. You could have small-cap emerging crypto. We could very well see sector funds."

T. Rowe Price isn't trying to compete directly with firms like BlackRock in passive crypto investing, Macellari added. Instead, the firm's focus remains on delivering active portfolio management in an asset class where leadership can shift quickly.

"What we're doing is very much our lane," she said. "If we see places where active management can really add value for clients, then we'll pursue that."

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