T. Rowe Price Portfolio Manager Supports Crypto and DeFi Investments
Dominic Rizzo, manager of T. Rowe Price’s technology-focused ETF, supports crypto, DeFi, and stablecoins. He states that there are limited ways for public market equity investors to gain exposure to these trends, with Coinbase being a notable exception.
As of Tuesday, 0.89% of the fund’s total holdings were in COIN, contrasted with approximately 30% in Nvidia, Apple, and Microsoft. The ETF invests across hardware, software, internet, and payments sectors. Rizzo identifies Coinbase as meeting his criteria for a “linchpin technology,” characterized by innovation in a growth market, improving fundamentals, and reasonable valuation.
Rizzo describes Coinbase as “a unique animal,” highlighting its role as custodian for most US crypto ETFs and its partnership with USDC issuer Circle, along with its layer-2 solution, Base. COIN was up 40% year-to-date as of Tuesday’s close.
Rizzo believes Coinbase serves as a crucial on- and off-ramp between crypto and traditional finance, differentiating it from other crypto-related stocks like MicroStrategy or bitcoin miners, which do not meet his “linchpin” definition. He anticipates more opportunities in crypto equity markets and aims to stay informed about developments in this significant trend.