Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 181

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 181
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 Trust may borrow XRP or cash as trade credit (“Trade Credit”)
the Lender on a short-term basis to avoid having to pre-fund the Trust’s Trading Balance. This allows the Trust to buy or sell
XRP through the XRP Counterparty in an amount that exceeds the cash or XRP credited to the Trust’s Trading Balance at the XRP Counterparty
at the time such order is submitted to the XRP Counterparty, which is expected to facilitate the Trust’s ability to process cash
creations and redemptions and pay the Sponsors Fee and any other Trust expenses not assumed by the Sponsor, to the extent applicable,
in a timely manner by seeking to lock in the XRP price on the trade date for creations and redemptions or the payment date for payment
of the Sponsor’s Fee or any other Trust Expenses not assumed by the Sponsor, rather than waiting for the funds associated with
the creation to be transferred by the Cash Custodian to the XRP Counterparty prior to purchasing the XRP or for the XRP held in the Vault
Balance to be transferred to a Trading Balance prior to selling the XRP.

In connection with a purchase
order, the Trust may first borrow cash from the Lender using the Trade Financing Agreement, and then purchase XRP. In connection
with a redemption order, the Trust may first borrow XRP from the Lender using the Trade Financing Agreement, and then sell this XRP.

The Sponsor does not generally
intend to fund the Trading Balance at the Prime Broker with sufficient cash or XRP in connection with creation and redemption transactions
or to pay fees and expenses, and instead the Sponsor regularly expects to utilize the Post-Trade Financing Agreement in connection with
such creation and redemption transactions or for such fees and expenses. The purpose of borrowing the XRP or cash used in connection
with cash creation and redemption or to pay these fees and expenses from the Lender is to lock in the XRP price on the trade date or
the payment date, as applicable, rather than waiting for the funds associated with the creation to be transferred by the Cash Custodian
to the XRP Counterparty prior to purchasing the XRP or for the XRP held in the Vault Balance to be transferred to a Trading Balance prior
to selling the XRP (a process which may take up to twenty four hours, or longer if the XRP Ledger is experiencing delays in transaction
confirmation, or if there are other delays). In the event Trade Credits are unavailable from the