Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 186

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 186
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 spreads, or commissions. Any slippage
so incurred will be the responsibility of the Authorized Participant, as a cash liability, and not of the Trust or Sponsor.

Each Authorized Participant
will be required to be registered as a broker-dealer under the Exchange Act and a member in good standing with FINRA, or exempt from
being or otherwise not required to be licensed as a broker-dealer or a member of FINRA, and will be qualified to act as a broker or dealer
in the states or other jurisdictions where the nature of its business so requires. Certain Authorized Participants may also be regulated
under federal and state banking laws and regulations. Each Authorized Participant has its own set of rules and procedures, internal controls
and information barriers as it determines is appropriate in light of its own regulatory regime.

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The Sponsor performs extensive
due diligence as a part of its XRP Counterparty selection and onboarding process. As part of this process the Sponsor assesses XRP Counterparty
candidates against various criteria, including those relating to candidates’ (1) financial standing, (2) reputation, (3) settlement
history with the Sponsor and (4) regulatory oversight. No affiliates of the Trust or the Sponsor are expected to serve as an XRP Counterparty.

Creations and redemptions will
generally be “on-chain” transactions reflected in the Trust’s Vault Account. Under certain circumstances, these transactions
may be “off-chain” transactions that are represented in the books and records of the Prime Broker.

The Trust will be responsible
for XRP-related on-chain transaction fees associated with creation and redemption transactions and transactions with the Prime Broker,
and that the Sponsor will assume such expenses of the Trust in consideration for the Sponsor Fee. The Authorized Participant is responsible
for only a cash liability relating to creation and redemption costs, such as trading fees and slippage.

Authorized Participants
will place orders through the Transfer Agent. The Transfer Agent will coordinate with the XRP Custodian in order to facilitate settlement
of the Shares and XRP as described in more detail in the Creation Procedures and Redemption Procedures sections below.

The following description
of the procedures for the creation and redemption of Baskets is only a summary and a Shareholder should refer to the relevant provisions
of the Trust Agreement and the form of Authorized Participant Agreement for more detail. The Trust Agreement and form of Authorized Participant
Agreement will be filed as exhibits to the registration statement of which this Prospectus is a part.

Creation Procedures