That testing has implications beyond speculative trading. As stablecoins move further into mainstream finance, networks will need to handle everything from multi-million-dollar transfers to everyday consumer payments.
“It needs to be cost-effective to send $100 million in stablecoins,” Macellari said. “But it also needs to be cost-effective to send $3.”
The fund’s active approach also reflects T. Rowe Price’s broader investment philosophy. Unlike many ETF issuers that simply track market-cap-weighted indexes, the firm believes crypto requires active security selection.
“We think good judgment and good decision making and active management probably matters more in crypto than any other asset class,” Macellari said.
Rather than simply buying the largest cryptocurrencies, the team evaluates assets using three layers of analysis: blockchain technology and token economics, ecosystem growth and adoption, and market momentum.
“You can be right on the fundamentals,” she said. “But if crypto Twitter doesn’t see it or doesn’t agree with you, you kind of stand in their way at your peril.”
Building beyond one ETF
Macellari says TKNZ was designed as a “grow-with-me” product that can expand as the regulatory landscape evolves. The ETF currently invests in between five and 15 cryptocurrencies, but its eligible universe is expected to grow as additional assets meet the Securities and Exchange Commission (SEC) generic listing standards.