T. Rowe Price Includes Dogecoin in Crypto ETF Portfolio
T. Rowe Price's actively managed multi-crypto spot ETF, TKNZ, has included Dogecoin (DOGE) in its portfolio since July. The fund, which is the sector's first of its kind, allocates approximately 1.26% to DOGE from the memecoin category.
The majority of the fund's holdings are comprised of Bitcoin and Ethereum, making up around 60% of the portfolio. However, according to Blue Macellari, Head of Digital Assets at T. Rowe Price, this inclusion of DOGE is part of their active management strategy.
Macellari stated that it's not right to exclude memecoins solely based on their reputation or market capitalization, citing the importance of price momentum and contribution to portfolio performance as key factors in asset selection. He believes that including a broader range of crypto assets provides investors with greater access to the market.
Macellari also emphasized the role of memecoin activity in stress-testing blockchain networks, highlighting their ability to handle high traffic volumes and low transaction costs. This capacity, he suggests, could be crucial for widespread adoption of stablecoins in the future.