TKNZ, an actively managed multi-crypto spot ETF launched in July by US asset management company T. Rowe Price, attracted attention by including Dogecoin (DOGE) in its portfolio.
TKNZ, which stands out as the sector’s first actively managed multi-token spot crypto ETF, has approximately 60% of its portfolio comprised of Bitcoin and Ethereum. However, the fund has also allocated approximately 1.26% to Dogecoin from the memecoin category.
Blue Macellari, Head of Digital Assets at T. Rowe Price, stated that this approach is part of their active management strategy. According to Macellari, it’s not right to exclude memecoins that have reached a certain history and market capitalization simply because they “don’t seem serious.”
Macellari argued that a crypto asset should be considered if it demonstrates strong price momentum or can contribute to portfolio performance. The executive stated that their aim is to provide investors with access to a broader segment of the crypto market, rather than a narrow portfolio that only selects assets that “look reputable.”
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Macellari also stated that memecoin activity serves as an important stress test for blockchain networks. He noted that during periods of intense memecoin craze, networks are tested in real-world conditions for scalability, low transaction costs, fast consensus, and reliability under high traffic.
Macellari stated that this capacity could play a critical role in the widespread adoption of stablecoins in the future, adding that blockchain networks should be able to handle both large transfers of hundreds of millions of dollars and small payments of a few dollars quickly and at low cost.
Macellari believes that sound judgment and proactive decision-making in crypto assets create more value compared to other asset classes. The executive also expects the crypto ETF market to become more fragmented into subcategories in the coming period.
*This is not investment advice.
