Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 147

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 147
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 Trust acknowledges, however, that this arbitrage mechanism could potentially
be adversely impacted if halts in the trading of spot XRP were to occur across multiple exchanges, whether due to breaches or otherwise.

The Sponsor reserves the right
to adjust the Share price of the Trust in the future to maintain convenient trading ranges for Shareholders. Any adjustments would be
accomplished through stock splits or reverse stock splits. Such splits would decrease (in the case of a split) or increase (in the case
of a reverse split) the proportionate NAV per Share but would have no effect on the net assets of the Trust or the proportionate voting
rights of Shareholders or the value of any Shareholder’s investment.

Calculation of Principal Market NAV and Principal Market NAV per Share

In addition to calculating
NAV and NAV per Share, for purposes of the Trust’s financial statements, the Trust determines the Principal Market NAV and Principal
Market NAV per Share on each valuation date for such financial statements. The determination of the Principal Market NAV and Principal
Market NAV per Share is identical to the calculation of NAV and NAV per Share, respectively, except that the value of XRP is determined
using the fair value of XRP based on the price in the XRP market that the Trust considers its “principal market” as of 4:00 p.m.
ET on the valuation date, rather than using the Pricing Benchmark.

The Trust has adopted a valuation
policy, which provides for the procedure for valuing the Trust’s assets. The policy also sets forth the procedures to determine
the principal market (or in the absence of a principal market, the most advantageous market) for purposes of determining the Principal
Market NAV and Principal Market NAV per Share in accordance with FASB ASC 820-10, which outlines the application of fair value accounting.
Under its valuation policy, the Trust determines its principal market (or in the absence of a principal market the most advantageous market)
annually and conducts an analysis at least on a quarterly basis to determine whether there have occurred any changes in XRP markets and
its operations that would require a change in the Trust’s determination of its principal market.

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 fair value measurement framework in FASB ASC 820-10. This analysis is performed from the perspective of both the Trust
and the XRP Counterparty.

ASC 820-