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Clients Want Crypto? Active ETP TKNZ Is a 1-Stop Shop

While it doesn’t necessarily dominate the headlines as much as it has in past years, crypto remains an area of significant interest and opportunity. Spot ETPs are available now for investors to better triangulate their exposures, but how should advisors meet investor interest in crypto assets? The T. Rowe Price Active Crypto ETF (TKNZ) provides a one-stop crypto exchange-traded solution by combining multiple tokens in one active wrapper.Key Takeaways: TKNZ launched just recently and stands out as a source of multiple crypto exposures in one portfolio. The active crypto strategy leverages T. Rowe Price’s global research suite to craft a balanced allocation therein. The strategy may be able to help mitigate some inflation risk for portfolios, given crypto’s status as a potential hedge. After its fee waiver, TKNZ charges a net 75 basis point (bps) to actively invest in a diversified group of crypto assets. Leaning on T. Rowe Price’s fundamental research capabilities, the strategy also measures market metrics like momentum for said assets. Its management team uses both bottom-up analysis and top-down research into the thematic space overall, but with the ability to expand with the market. Specifically, the active crypto ETP looks to factors like long-term growth potential and blockchain advances. It applies a quant risk framework, too, to help guide decisions on allocations and allocation sizes. The fund expects to hold between five and 15 crypto assets overall. Together, the fund can make a solid, efficient option to help clients get the digital assets exposure they want. At a time when inflation remains stubborn, crypto assets can help hedge somewhat against inflation’s impact on portfolios. They can make for a small, but mighty, allocation for many investors. That’s where the active approach can shine. By including multiple tokens in one strategy, the fund reduces confusion and offers a straightforward single-ticker solution. Rather than advisors and investors tracking multiple spot crypto prices manually, TKNZ provides ongoing active management and market oversight. Overall, that can make it a solution worth watching as a satellite allocation. For those with clients clamoring for crypto, the T. Rowe Price Active Crypto ETF TKNZ may be one worth considering. For more news, information, and analysis, visit our Active ETF Content Hub.

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