T. Rowe Price, one of the biggest old-school fund managers in the US with roots stretching back to 1937, is finally dipping its toes into crypto, but not just with another Bitcoin tracker.
A Oct. 22 SEC filing reveals the $1.8 trillion firm wants to run a fund with a “diversified basket of crypto assets,” targeting between 5-15 coins weighted differently than the usual market cap approach.
They aim to beat the FTSE Crypto US Listed Index (the top ten exchange-listed tokens) while keeping the freedom to zig when others zag.
This puts T. Rowe in a small club of major players designing products around active management instead of simple exposure.
It’s a departure from what BlackRock did with its spot Bitcoin ETF (now holding about $90 billion) and Fidelity’s $23 billion fund.
Those are just passive Bitcoin conduits; T. Rowe’s approach is more like an equity fund, with managers trying to outperform by making smart allocation choices across multiple assets.
This is T. Rowe’s attempt to restart growth.
The Baltimore firm has watched money flow out of its mutual funds for years, many of which couldn’t keep up with passive benchmarks.
Since 2021, they’ve lost over $67 billion in assets under management despite the broader market rally. CEO Rob Sharps has been under pressure to modernize the 87-year-old firm’s approach, especially as younger investors increasingly bypass traditional funds altogether.
Crypto gives them a fresh battleground where active management might actually still work. They’ve already built the trading infrastructure, with “end-to-end capabilities” for custody and execution.
T. Rowe has historically been more conservative than peers like BlackRock, and they were noticeably absent from the first wave of spot Bitcoin ETFs. This makes their multi-coin approach even more surprising.
The FTSE Crypto US Listed Index currently includes Bitcoin and Ethereum alongside alts like Solana and XRP, hinting at what the portfolio might look like. Their square-root weighting means smaller assets get proportionally bigger allocations than in typical market-cap models. For example, if Solana represents 5% of the crypto market cap, it might get closer to 15-20% allocation under this model.
Why T. Rowe’s crypto pivot matters now
This matters because every major ETF so far has just reinforced Bitcoin’s dominance. A multi-asset approach could finally spread liquidity more evenly across the upper tier of crypto.
This structure also shows how institutions are gradually accepting altcoins within regulatory boundaries. By sticking to “listed” assets, the index essentially limits the fund to tokens traded on US-compliant exchanges, providing legal cover while expanding options.
For investors, that means getting exposure to assets like Solana, Cardano, or XRP without dealing with sketchy offshore products.
The implications for crypto markets run deep. Current institutional flows primarily feed Bitcoin’s liquidity, with smaller trickles to Ethereum.
If approved, T. Rowe’s fund could create more balanced institutional demand across multiple assets. With T. Rowe managing over $1.8 trillion, even a tiny allocation percentage could represent billions in potential inflows to altcoins.
There’s a bigger strategy here: active, multi-asset ETFs might shape the next wave of crypto money flows. BlackRock and Fidelity built empires on Bitcoin’s simplicity; T. Rowe is betting people now want professional judgment over what comes next.
The fund would test whether crypto can evolve from a single-asset play into a managed allocation, similar to how big institutions diversify across sectors.
The timing aligns with changing political winds, too.
With Trump supporting digital assets and the CME preparing 24-hour crypto futures trading next year, traditional finance is making more room for digital assets. T. Rowe’s move fits right into this trend: crypto is shifting from fringe speculation to a legitimate asset class.
For retail investors, T. Rowe’s entry offers something different: professional risk management in a notoriously volatile space.
Rather than trying to time individual altcoins, they could potentially benefit from T. Rowe’s century of investment experience applied to the crypto market. The fund would essentially function as a “crypto portfolio in a box,” potentially attracting investors who find individual token selection overwhelming.
Industry veterans might recognize this as part of a broader pattern. First came Bitcoin-only vehicles, then Ethereum. Multi-asset funds represent the third wave of institutional crypto adoption.
The next logical steps would be sector-focused crypto ETFs (like “DeFi-only” or “Web3 Infrastructure”), followed eventually by thematic crypto funds mirroring how traditional ETFs evolved.
Whether this kicks off an “altcoin ETF season” depends on how regulators handle multi-asset exposure. But the precedent is there. If T. Rowe gets approval, others will follow with their own mixes of liquidity, custody partners, and index rules.
Franklin Templeton and Invesco are reportedly watching closely, with their own multi-asset frameworks nearly ready.
What started as a Bitcoin ETF arms race could become a competition over who defines the broader investable universe of crypto, potentially reshaping how capital flows into digital assets for decades to come.
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