Key Takeaways
- • T. Rowe Price Head of Digital Assets Blue Macellari argued on a VettaFi webcast that active management adds value in crypto, citing wide dispersion across digital assets, with Bitcoin down 29% while Hyperliquid-related assets rose 101% and ZCash rose 211% through around noon on the Monday before the webcast.
- • The firm's multi-token active ETF, T. Rowe Price Active Crypto ETF (TKNZ), has returned 18.3% year to date, according to Macellari, and charges a 75 basis point fee.
- • TKNZ's positioning on the Hyperliquid network reflects the firm's expectation that the SEC will approve more related strategies, and was tied to the NYSE and ICE (OKX) announcement about bringing Hyperliquid onshore to back a perpetual futures exchange.
- • Macellari said the fund can trade around the clock, including weekends and after U.S. market closes, and settle immediately, which she framed as a key advantage over quarterly rebalancing.
- • Macellari said the proliferation of single-asset digital asset ETPs makes portfolio construction harder for advisors, and positioned active management as a way to simplify that choice.
Summary
T. Rowe Price Head of Digital Assets Blue Macellari made the case for active management in digital assets during a VettaFi webcast titled "T. Rowe Price Digital Assets and Active Crypto Strategies," moderated by VettaFi head of research Todd Rosenbluth. The discussion came nearly three years after the SEC approved spot Bitcoin ETFs, a development that broadened the investor base for crypto and digital assets. Macellari, who joined T. Rowe Price in 2022, argued that the space's rapid pace and wide return dispersion favor discretionary decision-making over passive exposure.
According to Macellari, returns across digital assets have diverged sharply. Up until around noon on the Monday before the webcast, Bitcoin was down 29%, while Hyperliquid blockchain assets were up 101% and ZCash was up 211%. She said there is "a lot of rich alpha" to be captured by going beyond Bitcoin and making active decisions about which tokens to hold and when.
Macellari also highlighted the proliferation of single-asset digital asset ETPs, which she said leaves advisors and investors facing a large pool of strategies when building a digital asset allocation. She pointed to T. Rowe Price's research platform as a way to apply fundamental research and active supervision to the asset class.
The firm's T. Rowe Price Active Crypto ETF (TKNZ), a multi-token active fund that launched earlier this year, has returned 18.3% year to date despite crypto market headwinds, according to Macellari. The fund charges a 75 basis point fee. She said the firm leaned into the Hyperliquid network in expectation that the SEC would approve more related strategies, and that TKNZ was positioned ahead of the NYSE and ICE (OKX) announcement about bringing Hyperliquid onshore to back a perpetual futures exchange.
On operations, Macellari said her team weighs the timing of position changes and revenue or growth projections, and considers catalysts such as elections and macro trends. She argued that quarterly rebalancing is too slow for the sector, and said TKNZ can trade the underlying assets around the clock, including after U.S. markets close and on weekends, with immediate settlement. She called that responsiveness a critical tool for managing any digital asset portfolio.
According to Macellari, returns across digital assets have diverged sharply. Up until around noon on the Monday before the webcast, Bitcoin was down 29%, while Hyperliquid blockchain assets were up 101% and ZCash was up 211%. She said there is "a lot of rich alpha" to be captured by going beyond Bitcoin and making active decisions about which tokens to hold and when.
Macellari also highlighted the proliferation of single-asset digital asset ETPs, which she said leaves advisors and investors facing a large pool of strategies when building a digital asset allocation. She pointed to T. Rowe Price's research platform as a way to apply fundamental research and active supervision to the asset class.
The firm's T. Rowe Price Active Crypto ETF (TKNZ), a multi-token active fund that launched earlier this year, has returned 18.3% year to date despite crypto market headwinds, according to Macellari. The fund charges a 75 basis point fee. She said the firm leaned into the Hyperliquid network in expectation that the SEC would approve more related strategies, and that TKNZ was positioned ahead of the NYSE and ICE (OKX) announcement about bringing Hyperliquid onshore to back a perpetual futures exchange.
On operations, Macellari said her team weighs the timing of position changes and revenue or growth projections, and considers catalysts such as elections and macro trends. She argued that quarterly rebalancing is too slow for the sector, and said TKNZ can trade the underlying assets around the clock, including after U.S. markets close and on weekends, with immediate settlement. She called that responsiveness a critical tool for managing any digital asset portfolio.
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