Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 136

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 136
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 Prices
for trades on XRP spot markets are typically reported publicly. An investor opening a trading account on a digital asset trading platform
must deposit an accepted government-issued currency into its account with the trading platform, or a previously acquired digital asset,
before they can purchase or sell assets on the trading platform. The process of establishing an account with a digital asset trading
platform and trading XRP is different from, and should not be confused with, the process of users sending XRP from one XRP address to
another XRP address on the XRP Ledger. This latter process is an activity that occurs on the XRP Ledger, while the former is an activity
that occurs entirely within the order book operated by the digital asset trading platform. The digital asset trading platform typically
records the investor’s ownership of XRP in its internal books and records, rather than on the XRP Ledger. The digital asset trading
platform ordinarily does not transfer XRP to the investor on the XRP Ledger unless the investor makes a request to the exchange to withdraw
the XRP in its platform trading account to an off-platform XRP wallet.

Outside of the spot markets,
XRP can be traded over-the-counter (“OTC”). The OTC market is largely institutional in nature, and OTC market participants
generally consist of institutional entities, such as firms that offer two-sided liquidity for XRP, investment managers, proprietary trading
firms, high-net-worth individuals that trade XRP on a proprietary basis, entities with sizeable XRP holdings, and family offices. The
OTC market provides a relatively flexible market in terms of quotes, price, quantity, and other factors, although it tends to involve
large blocks of XRP. The OTC market has no formal structure and no open-outcry meeting place. Parties engaging in OTC transactions
will agree upon a price — often via phone or email — and then one of the two parties will then initiate
the transaction. For example, a seller of XRP could initiate the transaction by sending the XRP to the buyer’s XRP address. The
buyer would then wire U.S. dollars to the seller’s bank account. OTC trades are sometimes hedged and eventually settled with
concomitant trades on digital asset trading platforms.

As discussed in more detail
below, barring the liquidation of the Trust or extraordinary circumstances, the Trust will not directly purchase or sell XRP, although
the Sponsor may direct the XRP Custodians to sell XRP to pay