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$64,964.28, 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."