T. Rowe Price Defends Memecoins in Active Crypto ETF
T. Rowe Price uses TKNZ as an active basket for BTC, ETH, Solana, and Dogecoin. The asset manager also sees memecoins as a test for blockchain performance and liquidity.
Key Takeaways
- T. Rowe Price is backing memecoins in its active crypto ETF TKNZ as part of a broader selection process focused on investment value.
- Dogecoin is the fund’s only memecoin right now and accounts for 1.26%, while Bitcoin and Ethereum together make up about 60% of the portfolio.
- Portfolio manager Blue Macellari says memecoins can help test blockchains for speed, low fees, and reliability when network traffic gets heavy.
T. Rowe Price is standing behind the decision to include memecoins in its new active crypto ETF TKNZ, and it even argues they can serve as a useful test for blockchains. The $1.9 trillion (€1.6 trillion) asset manager says the fund is meant to do more than simply mirror Bitcoin, Ethereum, and Solana. Instead, it is designed to offer a wider look at the crypto market, including tokens the team views as relevant to liquidity, network activity, and broader market behavior.
Active Management Over Principles
Blue Macellari, head of digital assets and lead portfolio manager for TKNZ, said the fund is built around investment merit rather than excluding tokens because of how they are perceived. In her view, a well-known memecoin with momentum or portfolio benefits should not be dismissed in advance, especially if that means investors could miss potential upside.
TKNZ is the first actively managed multi-token spot crypto ETF in the industry. Unlike traditional spot funds that hold only Bitcoin or only Ether, the team can change the mix based on research, market conditions, and risk controls. The fund charges a temporary 0.75% management fee through May 2027, after which it is scheduled to increase to 0.90% under the current structure.
At the moment, the ETF holds just one memecoin, Dogecoin, which represents 1.26% of the fund. Bitcoin and Ethereum still dominate the portfolio, together making up about 60%, while Binance Coin is the third-largest holding.
Memecoins as a Stress Test
Macellari does not see established memecoins only as speculative trades. She also views them as a practical way to gauge how well blockchains hold up under pressure. In her view, a memecoin rally on a chain is one of the clearest ways to see whether a network can process transactions quickly, keep fees low, and remain dependable when activity surges.
That point goes beyond memecoin trading itself. As stablecoins continue moving deeper into mainstream finance, networks need to handle both large transfers and smaller payments without fees or delays getting out of control. For crypto investors, that is a reminder that network performance and token activity are often evaluated together in real-world use.
Room for More Crypto ETFs
TKNZ launched on July 16 and, based on the latest available information, manages about $15 million (€13 million) in assets. The fund is organized as a Delaware statutory trust and is not subject to the Investment Company Act of 1940, which means it falls under a different regulatory setup than traditional ETFs and may involve different risks and disclosure standards.
The launch also fits into a broader shift as traditional asset managers roll out crypto products with more flexibility than the first wave of passive funds. T. Rowe Price expects the market to keep dividing into products for large caps, emerging tokens, and sector-specific baskets, while the SEC generic listing standards open the door to a wider investable universe. For European readers, that highlights how crypto ETFs are moving from simple index products toward active strategies with their own selection rules.
