Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 137

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 137
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 the next ledger update.

The XRP Ledger operates in
“ledger versions,” where each version is a new snapshot of the ledger’s state, including all confirmed transactions
since the last version. When a transaction is confirmed through consensus, it is included in the next ledger version. Once the ledger
version is closed and published (which happens approximately every 3-5 seconds), the transaction is considered final and irreversible.
The recipient’s balance is updated, and the sender’s balance is deducted accordingly. In addition, a small transaction fee
(measured in drops, where 1 XRP = 1,000,000 drops) is deducted from the sender’s account. Each transaction is assigned a unique
transaction hash, which can be used to track and verify the transaction on the XRP Ledger. Once recorded in the ledger, the transaction
is immutable, providing a permanent record of the transfer.

XRP Markets and Exchanges

XRP can be transferred in
direct peer-to-peer transactions through the direct sending of XRP over the XRP Ledger from one XRP address to another. While XRP was
originally intended to be used primarily as a means to conduct cross-border payments, XRP can also be used to pay other users of the
XRP Ledger for goods and services under what resembles a barter system. Consumers can also pay merchants and other commercial businesses
for goods or services through direct peer-to-peer transactions on the XRP Ledger or through third-party service providers.

In addition to using XRP to
engage in cross-border transactions or payment for goods and services, investors may purchase and sell XRP to speculate as to the value
of XRP in the XRP market, or as a long-term investment to diversify their portfolio. The price of XRP within the market is determined,
in part, by the supply of and demand for XRP in the global XRP market, market expectations for the adoption of XRP as a store of value
or as a viable cross-border payments facilitator, the number of merchants that accept XRP as a form of payment, the regulatory challenges
faced by Ripple Labs and XRP, and the volume of peer-to-peer transactions, among other factors.

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XRP spot markets typically
permit investors to open accounts with the market and then purchase and sell XRP via websites or through mobile applications. Prices
for trades on XRP spot markets are typically reported publicly. An investor opening a trading account on a digital asset trading