Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 232

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 232
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holder that is being redeemed. These gains or losses generally would equal the difference between the amount realized from the
sale of the XRP and the Shareholder’s tax basis for the portion of the Shareholder’s pro rata share of the XRP held in the
Trust that is sold to fund the redemption, as determined in the manner described above. A redemption of some or all of a Shareholder’s
Shares in exchange for the cash received from such sale is not expected to be treated as a separate taxable event for the Shareholder.

An in-kind redemption of some
or all of a Shareholder’s Shares in exchange for the underlying XRP represented by the Shares redeemed generally will not be a
taxable event to the Shareholder. The Shareholder’s tax basis for the XRP received in the redemption generally will be the same
as the Shareholder’s tax basis for the pro rata share of the XRP held in the Trust immediately prior to the redemption that is
attributable to the Shares redeemed. The Shareholder’s holding period for the XRP received generally will include the period during
which the Shareholder held the Shares being redeemed. A subsequent sale of the XRP received by the Shareholder generally will be a taxable
event.

After any sale or redemption
of less than all of a Shareholder’s Shares, the Shareholder’s tax basis for its pro rata share of the XRP held in the Trust
immediately after such sale or redemption generally will be equal to its tax basis in its share of the total amount of the XRP held in
the Trust immediately prior to the sale or redemption, less the portion of such basis which is taken into account in determining the
amount of gain or loss recognized by the Shareholder upon such sale or cash redemption or, in the case of an in-kind redemption, that
is treated as the basis of the XRP received by the Shareholder in the redemption.

The Trust intends to disclaim
any digital assets created by a fork of the XRP Ledger. Although in certain circumstances the Sponsor may claim or receive new digital
assets created by such a fork and use good faith efforts to make those digital assets (or at the Sponsor’s discretion, the proceeds
thereof) available to Shareholders as of the record date of the fork, there can be no assurance that the Sponsor will do so. Therefore,
if a fork of the XRP Ledger results in holders of XRP receiving a new digital asset of value, the Trust and the Shareholders may