Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 11

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 11
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mining. The XRP Ledger can handle up to 1,500 transactions per second, far more than the Bitcoin or Ethereum blockchains. This makes
the XRP Ledger suitable for high-volume use cases, such as cross-border payments. Lastly, because validators do not need to spend resources
on mining, transaction fees are extremely low (typically a fraction of a cent per transaction).

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Transactions are validated
on the XRP Ledger by a network of independent validator nodes. These nodes do not mine new blocks but participate in a consensus process
to ensure that transactions are valid and correctly ordered on the ledger. Any node can be a validator, but for practical purposes, the
XRP Ledger depends on a list of trusted validators known as the Unique Node List or “UNL.” Validators are entities (which
can be individuals, institutions or other organizations) that run nodes to participate in the consensus process. These validators ensure
the integrity and accuracy of the ledger. Each node in the network maintains a Unique Node List — a list of other validators
that the node trusts to reliably validate transactions. The XRP Ledger’s architecture means that different nodes may maintain different
UNLs, but there needs to be some overlap in the UNLs for consensus to work effectively.

Unlike other digital assets
such as bitcoin or ether, XRP was not and is not mined gradually over time. Instead, all 100 billion XRP tokens were created at
the time of the XRP Ledger’s launch in 2012. This means that every XRP token that exists today was generated from the outset, without
the need for a mining process. Of the 100 billion XRP generated by the XRP Ledger’s code, the founders of Ripple Labs Inc.,
a corporation incorporated and existing under the laws of Delaware (“Ripple Labs”) retained 20 billion XRP and the rest,
nearly 80 billion XRP, was provided to Ripple Labs.

For more information on XRP
and the XRP Ledger, see “XRP, XRP MARKET AND REGULATION OF XRP” below.

The Trust’s Investment Objective

The Trust’s investment
objective is to seek to track the performance of XRP, as measured by the Pricing Benchmark, adjusted for the Trust’s expenses and
other liabilities. In seeking to achieve its investment objective, the Trust will hold XRP and will value its Shares daily as of 4:00 p.m.
ET based on the Pricing Benchmark.

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