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Asset manager T. Rowe Price has quietly added Cardano to its Active Crypto ETF, placing the cryptocurrency alongside major assets such as Bitcoin and Ethereum.
The move follows the fund’s initial launch without Cardano, despite earlier filings indicating that T. Rowe Price could support the asset. TKNZ began trading on NYSE Arca in mid-July after the U.S. SEC approved the fund in June.
At launch, TKNZ held Bitcoin, Ethereum, BNB, Solana, XRP, Hyperliquid, Stellar, Dogecoin, USD Coin, and cash equivalents. Although T. Rowe Price had previously indicated that Cardano could qualify for inclusion, $ADA was absent from the fund’s initial holdings.
However, the asset manager has now followed through by adding $ADA to the portfolio.
Cardano Meets TKNZ’s Eligibility Requirements
Cardano’s inclusion is notable because TKNZ cannot invest in every cryptocurrency. Instead, the fund applies eligibility criteria covering regulatory classification, liquidity, custody, valuation, and an asset’s ability to be held and traded within a regulated investment product.
In addition, the fund’s prospectus excludes assets considered securities under U.S. federal law. Therefore, $ADA’s inclusion indicates that T. Rowe Price considers Cardano eligible under the fund’s investment framework.
$ADA Holds a Small Allocation
Despite its addition, Cardano currently accounts for only a small portion of TKNZ.
$ADA ranks as the fund’s 10th-largest asset, with a 0.44% portfolio weighting, according to data from the fund’s website. Based on TKNZ’s reported $16.47 million in net assets, the allocation represents approximately $72,500 in Cardano.
Nevertheless, the significance of the move extends beyond the size of the investment. By including $ADA in an actively managed product from a major asset manager, TKNZ provides traditional investors with another avenue to gain Cardano exposure through a regulated fund structure.
Cardano’s Institutional Presence Expands
Meanwhile, T. Rowe Price’s move adds to Cardano’s growing presence in U.S.-based crypto investment products.
$ADA has already appeared in several diversified crypto funds and index products, including the Bitwise 10 Crypto Index Fund (BITW), Grayscale Smart Contract Fund, and Hashdex Nasdaq CME Crypto Index ETF. Consequently, TKNZ’s addition further strengthens Cardano’s position within the institutional crypto-investment landscape.
In the meantime, $ADA posted a strong performance yesterday, rallying more than 10% and briefly surpassing $0.19. However, the token has since surrendered some of those gains and currently trades at around $0.1838.
Despite the pullback, Cardano remains up 4.9% over the past 24 hours. Its trading volume has also surged 212% during the same period to $528.26 million, highlighting increased market activity around the asset.
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theblock.co