Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 246

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 246
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statements in conformity with US GAAP requires the Trust to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results may differ materially from such estimates as additional information becomes available or actual amounts may become determinable.
Should actual results differ from those previously recognized, the recorded estimates will be revised accordingly with the impact reflected
in the operating results of the Trust in the reporting period in which they become known.

<div align='center'>F-8</div>

21Shares XRP ETF

Notes to the financial statements

(Expressed in United States Dollars)

| 2. | Significant Accounting Policies (CONTINUED) |

Fair Value – Definition and Hierarchy

US GAAP defines fair value as
the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants
at the measurement date. The Trust’s policy is to value investments held at fair value.

The Trust identifies and determines the XRP principal market (or in
the absence of a principal market, the most advantageous market) for GAAP purposes consistent with the application of the fair value measurement
framework in FASB ASC 820 – Fair Value Measurement. A principal market is the market with the greatest volume and activity level
for the asset or liability. The determination of the principal market will be based on the market with the greatest volume and level of
activity that can be accessed. The Trust obtains relevant volume and level of activity information and based on initial analysis will
select an exchange market as the Trust’s principal market. The net asset value (“NAV”) and NAV per Share will be calculated
using the fair value of XRP based on the price provided by this exchange market, as of 4:00 p.m. ET on the measurement date for GAAP purposes.
The Trust will update its principal market analysis periodically and as needed to the extent that events have occurred, or activities
have changed in a manner that could change the Trust’s determination of the principal market.

Various inputs are used in determining
the fair value of assets and liabilities. Inputs may be based on independent market data (“observable inputs”) or they may
be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three
broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy
is based on the lowest level of any input that