Why trillion-dollar asset manager T. Rowe Price put memecoins in its crypto ETF
The $1.9 trillion asset manager says excluding established memecoins on principle would undermine its active approach to crypto investing.
In July, $1.9 trillion asset manager T. Rowe Price unveiled its inaugural actively managed multi-token spot crypto exchange-traded fund (ETF). The fund, named TKNZ, surprised many by including memecoins such as Dogecoin in its portfolio, alongside more traditional cryptocurrencies like Bitcoin and Ether. T. Rowe Price's head of digital assets, Blue Macellari, explained that the inclusion of memecoins was not driven by internet hype but by a commitment to a comprehensive representation of the crypto market.
Macellari emphasized that active management involves evaluating each eligible token on its investment merits rather than dismissing it due to its reputation. She stated that excluding a memecoin on principle could potentially exclude investors from participating in its performance. The fund's active approach is reflective of T. Rowe Price's broader investment philosophy, which believes active management plays a crucial role in the crypto asset class.
The fund's eligible cryptocurrency universe is expected to expand as additional assets meet SEC generic listing standards, finalized last year. Macellari anticipates the crypto ETF market will become increasingly specialized, with funds focusing on large-cap cryptocurrencies, emerging digital assets, and individual sectors.
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