T. Rowe Price Defends Dogecoin Holding in Active Crypto ETF

T. Rowe Price explained why it included Dogecoin (DOGE) in its active digital-asset exchange-traded fund.

Blue Macellari, head of digital assets at T. Rowe Price, told CoinDesk on Aug. 8 that the firm wanted “genuine active management.” It would not exclude memecoins on principle if that meant investors could not participate in gains from the sector.

T. Rowe Price launched the T. Rowe Price Active Crypto ETF (TKNZ) last month, which it described as the industry’s first active multi-token spot digital-asset ETF. Bitcoin (BTC) and Ether (ETH) account for about 60% of the fund’s assets. Dogecoin is the only memecoin in the portfolio, with a 1.26% weighting.

Macellari said the firm is investing in a proven memecoin that has existed for years and ranks among the largest digital assets by market capitalization. He stressed that the position is not simply aimed at capturing an internet fad or speculative demand.

He also said memecoin trading can serve as an indicator of blockchain network performance. A blockchain that has gone through a memecoin season comes closest to a real-world stress test of the network, he said. To handle that level of activity, it must provide low costs and fast settlement while continuing to operate reliably during congestion.

Macellari added that digital assets require sound judgment, decision-making and active management more than any other asset class. If the firm identifies areas where active management can add tangible value for clients, it will continue to pursue them.